State Department's $29.5M IT Service Management Software Contract Awarded to Clearavenue LLC

Contract Overview

Contract Amount: $29,537,383 ($29.5M)

Contractor: Clearavenue LLC

Awarding Agency: Department of State

Start Date: 2013-09-29

End Date: 2020-06-28

Contract Duration: 2,464 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF "VANGUARD 2.3.4" IT SERVICE MANAGEMENT SOFTWARE SOLUTIONS. HYBRID FFP(75%)/LABOR HOUR(25%). CONTRACTOR WILL PROVIDE SOFTWARE LIFECYCLE DEVELOPMENT, OPERATIONS, AND MAINTENANCE SERVICES FOR ENTERPRISE IT SERVICE MANAGEMENT SOFTWARE.

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $29.5 million to CLEARAVENUE LLC for work described as: IGF::OT::IGF "VANGUARD 2.3.4" IT SERVICE MANAGEMENT SOFTWARE SOLUTIONS. HYBRID FFP(75%)/LABOR HOUR(25%). CONTRACTOR WILL PROVIDE SOFTWARE LIFECYCLE DEVELOPMENT, OPERATIONS, AND MAINTENANCE SERVICES FOR ENTERPRISE IT SERVICE MANAGEMENT SOFTWARE. Key points: 1. The contract focuses on software lifecycle development, operations, and maintenance for enterprise IT service management. 2. A hybrid pricing structure of 75% Firm Fixed Price and 25% Labor Hour was utilized. 3. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a competitive process. 4. The duration of the contract was approximately 6.8 years, suggesting a long-term need for these services. 5. The primary service category is Computer Systems Design Services, a common area for federal IT spending. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without access to the underlying IDIQ vehicle and its pricing structure. The hybrid pricing model (FFP/LH) is common, but the Labor Hour component introduces some cost uncertainty. Comparing the total award amount to similar IT service management contracts across the government would provide better context for value assessment. The duration suggests a significant investment, and the value proposition hinges on the effectiveness of the delivered software lifecycle services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under 'Full and Open Competition After Exclusion of Sources'. This designation suggests that while the competition was open, certain sources may have been excluded for specific reasons, potentially related to the nature of the requirement or existing contracts. The number of bidders is not specified, but the 'full and open' nature implies a broad solicitation.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more favorable pricing compared to sole-source or limited competition scenarios.

Public Impact

Federal employees within the Department of State will benefit from improved IT service management capabilities. The contract delivers software lifecycle development, operations, and maintenance services. The geographic impact is primarily within the Department of State's operational footprint, likely concentrated in Maryland where the contractor is based. The contract supports IT professionals and potentially impacts the efficiency of IT service delivery across the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Labor Hour' component of the contract introduces potential for cost overruns if not managed tightly.
The specific reasons for 'Exclusion of Sources' in a 'Full and Open' competition warrant further investigation to ensure fairness and optimal competition.
Without details on performance metrics, assessing the true value and effectiveness of the IT service management software is difficult.

Positive Signals

The use of 'Full and Open Competition' indicates an effort to leverage the broadest possible market.
The hybrid pricing structure can offer flexibility in addressing evolving IT service needs.
The long contract duration suggests a stable, ongoing requirement and a potentially established relationship for service delivery.

Sector Analysis

This contract falls within the IT Services sector, specifically focusing on Computer Systems Design Services. The federal IT services market is vast, with significant spending on software development, operations, and maintenance. Comparable spending benchmarks would involve analyzing other large-scale IT service management contracts awarded by agencies like the Department of Defense or GSA, considering factors like contract type, duration, and specific services offered.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The primary contractor, Clearavenue LLC, is not explicitly identified as a small business in the provided data, but its size would determine its own subcontracting opportunities and obligations.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of State's contracting officers and program managers. The contract's performance would be monitored against established milestones and service level agreements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Service Management Software
Computer Systems Design Services
Software Development Contracts
IT Operations and Maintenance
Department of State IT Contracts

Risk Flags

Potential for cost overruns due to Labor Hour component
Limited competition due to 'Exclusion of Sources'
Lack of detailed performance metrics for value assessment
Dependency on contractor for critical IT service management functions

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $29.5 million to CLEARAVENUE LLC. IGF::OT::IGF "VANGUARD 2.3.4" IT SERVICE MANAGEMENT SOFTWARE SOLUTIONS. HYBRID FFP(75%)/LABOR HOUR(25%). CONTRACTOR WILL PROVIDE SOFTWARE LIFECYCLE DEVELOPMENT, OPERATIONS, AND MAINTENANCE SERVICES FOR ENTERPRISE IT SERVICE MANAGEMENT SOFTWARE.

Who is the contractor on this award?

The obligated recipient is CLEARAVENUE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2013-09-29. End: 2020-06-28.

What is Clearavenue LLC's track record with federal IT service management contracts?

Clearavenue LLC has experience in providing IT services to the federal government. This specific contract with the Department of State for IT Service Management Software Solutions represents a significant award. Further analysis of their contract history would reveal the types of services provided, their performance ratings on past contracts, and their overall experience in delivering complex IT solutions. Examining their portfolio of awarded contracts, particularly those involving software lifecycle management and service desk operations, would offer a clearer picture of their capabilities and reliability in this domain. Understanding their past performance on similar contracts can help assess their suitability for this role and predict future performance.

How does the $29.5 million award compare to similar IT service management contracts?

The $29.5 million award over approximately 6.8 years for IT Service Management Software Solutions is a substantial investment. To benchmark its value, it should be compared against other federal contracts for similar services. For instance, contracts for enterprise-level IT service management platforms, including software development, operations, and maintenance, awarded to other agencies or by the Department of State itself in previous years. Factors such as the number of users supported, the scope of services (e.g., help desk, asset management, incident management), and the contract type (FFP vs. LH) are crucial for a fair comparison. Without these comparative data points, it's difficult to definitively state whether this award represents excellent, fair, or questionable value for money.

What are the key risks associated with this contract?

Key risks associated with this contract include potential cost overruns due to the 25% Labor Hour component, which is less predictable than Firm Fixed Price. There's also a risk related to vendor lock-in if the software becomes deeply integrated and difficult to replace. Performance risk is another concern; the contractor must effectively deliver software lifecycle development, operations, and maintenance to meet the Department of State's IT service management needs. Finally, the 'Exclusion of Sources' in the competition, while potentially justified, could indicate a missed opportunity for broader competition and potentially better pricing or innovative solutions from excluded vendors.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value?

The 'Full and Open Competition After Exclusion of Sources' aims to balance broad market access with specific requirements. While 'Full and Open' suggests an intention to solicit widely, the 'Exclusion of Sources' implies that certain potential bidders were not considered. The effectiveness in ensuring value depends on the justification for these exclusions. If the exclusions were based on legitimate technical requirements or security mandates that only a subset of vendors could meet, then the competition, though limited, might still yield good value. However, if the exclusions were arbitrary or overly restrictive, it could stifle competition, potentially leading to higher prices and less innovation, thus diminishing taxpayer value.

What is the historical spending trend for IT Service Management Software at the Department of State?

Analyzing historical spending trends for IT Service Management Software at the Department of State would provide crucial context for this $29.5 million award. Understanding how much the Department has spent on similar solutions in previous years, the types of contracts awarded (e.g., development, maintenance, licensing), and the contractors involved can reveal patterns. Significant increases or decreases in spending could indicate shifts in IT strategy, technology adoption, or budget priorities. This historical data is essential for assessing whether the current contract represents a sustainable investment, an anomaly, or a strategic shift in the Department's approach to IT service management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6711COLUMBIA GATEWAY DRIVE, SUITE 550, COLUMBIA, MD, 21046

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $46,191,657

Exercised Options: $32,319,788

Current Obligation: $29,537,383

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0699Z

IDV Type: GWAC

Timeline