State Department's $67M IT Modernization Task Order Shows Strong Competition and Long-Term Engagement

Contract Overview

Contract Amount: $67,151,922 ($67.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of State

Start Date: 2014-03-24

End Date: 2023-09-19

Contract Duration: 3,466 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE TASK ORDER SUPPORTS THE GLOBAL INFORMATION TECHNOLOGY MODERNIZATION PROGRAM FOR THE BUREAU OF INFORMATION RESOURCE MANAGEMENT AND PROVIDES SUPPLY CHAIN MANAGEMENT SUPPORT SERVICES.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $67.2 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF THE TASK ORDER SUPPORTS THE GLOBAL INFORMATION TECHNOLOGY MODERNIZATION PROGRAM FOR THE BUREAU OF INFORMATION RESOURCE MANAGEMENT AND PROVIDES SUPPLY CHAIN MANAGEMENT SUPPORT SERVICES. Key points: 1. The task order, valued at approximately $67 million, supports critical IT modernization efforts. 2. Full and open competition indicates a healthy market for these services. 3. The contract's duration of over 9 years suggests a need for sustained support in IT management. 4. Amentum Services, Inc. has been the incumbent contractor, implying a track record of performance. 5. The fixed-price contract type helps manage cost certainty for the government. 6. The services fall under administrative and management consulting, a broad but essential category.

Value Assessment

Rating: good

The contract's value of $67.15 million over its nearly 10-year period represents a significant investment in IT modernization. Benchmarking this against similar large-scale IT support contracts for federal agencies suggests that the per-year cost is within a reasonable range, especially considering the scope of global information technology modernization and supply chain management. The firm-fixed-price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete for the contract. The fact that it was competed suggests a robust market for IT modernization and supply chain management services. The number of bidders is not specified, but the open competition generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down prices and improves service quality.

Public Impact

Federal employees within the Bureau of Information Resource Management benefit from modernized IT systems and improved supply chain management. The contract delivers essential IT modernization and supply chain management support services. The geographic impact is global, supporting the Department of State's worldwide operations. Workforce implications include the potential for skilled IT professionals to be engaged in critical modernization projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to contractor complacency if not actively managed.
Reliance on a single contractor for an extended period might limit adoption of newer technologies.
Scope creep could increase costs if not carefully monitored over the contract's lifespan.

Positive Signals

Successful incumbent performance likely indicates reliability and understanding of agency needs.
Firm-fixed-price contract provides budget certainty for the agency.
Full and open competition suggests a competitive market and potential for good value.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT modernization and management consulting. The market for IT services within the federal government is substantial, with agencies consistently investing in upgrading legacy systems and enhancing cybersecurity. Comparable spending benchmarks for large-scale IT modernization projects often run into tens or hundreds of millions of dollars, making this $67 million task order a significant, but not outlier, investment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of specific small business subcontracting goals mentioned. This suggests that the primary award went to a large business. While not a direct set-aside, large contracts can sometimes create subcontracting opportunities for small businesses, but the extent of this is not detailed here. The focus appears to be on a large-scale prime contractor solution.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. The Inspector General's office for the Department of State would also have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Regular performance reviews and audits would be standard accountability measures.

Related Government Programs

Global Information Technology Modernization Program
Bureau of Information Resource Management IT Services
Department of State Supply Chain Management Contracts
Federal IT Consulting Services
IT Modernization Task Orders

Risk Flags

Long contract duration may present risks related to technology obsolescence.
Potential for scope creep over the extended period requires diligent oversight.
Reliance on a single vendor for critical IT functions warrants continuous performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $67.2 million to AMENTUM SERVICES, INC.. IGF::OT::IGF THE TASK ORDER SUPPORTS THE GLOBAL INFORMATION TECHNOLOGY MODERNIZATION PROGRAM FOR THE BUREAU OF INFORMATION RESOURCE MANAGEMENT AND PROVIDES SUPPLY CHAIN MANAGEMENT SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $67.2 million.

What is the period of performance?

Start: 2014-03-24. End: 2023-09-19.

What is the historical spending trend for IT modernization at the Department of State under this program?

Historical spending data for the Department of State's IT modernization efforts, particularly under the Bureau of Information Resource Management, would reveal patterns of investment over time. Analyzing past task orders and contracts related to this program can indicate whether spending has been consistent, increasing, or decreasing. For instance, if previous years saw significantly lower or higher spending on similar modernization efforts, it could provide context for the current $67 million task order. Understanding these trends helps assess if the current investment aligns with the agency's long-term IT strategy and budget allocation priorities. Without specific historical data for this exact task order's predecessors, it's difficult to pinpoint exact trends, but the long duration (2014-2023) suggests a sustained commitment to modernization.

How does the per-year cost of this contract compare to similar IT modernization contracts awarded by other federal agencies?

To assess the value for money, the annual cost of this $67.15 million contract, spread over its approximately 9-year duration (roughly $7.5 million per year), should be benchmarked against similar IT modernization and management contracts at agencies like the Department of Defense, GSA, or HHS. Factors such as the scope of services (e.g., infrastructure, software development, cybersecurity), the complexity of the environment (global operations for the State Department), and the specific technologies involved are crucial for a fair comparison. If comparable contracts for similar scope and complexity are in the same annual cost range or higher, it suggests this contract represents good value. Conversely, if other agencies achieve similar outcomes at a significantly lower annual cost, it might indicate potential overpricing or inefficiencies.

What specific risks were identified during the procurement process for this task order, and how were they mitigated?

While the provided data does not detail specific risks identified during procurement, typical risks for large IT modernization contracts include technical obsolescence, cybersecurity vulnerabilities, contractor performance issues, scope creep, and integration challenges with existing systems. Given this was a full and open competition, the solicitation likely included detailed performance work statements (PWS) and evaluation criteria designed to mitigate these risks. Mitigation strategies could involve requiring specific technical expertise, robust security protocols, phased implementation plans, clear deliverable milestones, and performance-based payment structures. The long duration and incumbent status of Amentum Services, Inc. might suggest that initial risks were deemed manageable or that the contractor has a proven ability to navigate these challenges within the State Department's environment.

What is Amentum Services, Inc.'s track record with the Department of State and other federal agencies for similar IT services?

Amentum Services, Inc. (and its predecessors, if applicable through mergers/acquisitions) likely has a substantial track record given this task order's long duration. Assessing their past performance ratings, any past performance issues or disputes, and the successful completion of previous contracts with the Department of State and other federal agencies is crucial. Positive performance indicators would include consistent high ratings, timely delivery, adherence to budget, and successful project outcomes. Conversely, a history of significant performance failures, contract disputes, or unresolved issues would raise concerns about their capability to fulfill this extensive IT modernization role effectively. Publicly available contract databases and agency performance information systems can provide insights into their broader federal contracting history.

How effectively has the Bureau of Information Resource Management utilized IT modernization funds over the life of this contract?

Assessing the effectiveness of fund utilization requires examining the tangible outcomes and benefits achieved through the IT modernization efforts supported by this task order. Key performance indicators (KPIs) related to system uptime, processing speed improvements, enhanced cybersecurity posture, user satisfaction, and cost savings from efficiency gains would be essential metrics. Comparing the achieved benefits against the initial objectives outlined in the contract and the total expenditure provides a measure of effectiveness. If the modernization has led to demonstrably better IT services, increased operational efficiency, and improved security for the Department of State's global operations, then the funds have likely been utilized effectively. Without specific performance reports or outcome data, this assessment remains qualitative.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 20501 SENECA MEADOWS PKWY, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $74,202,612

Exercised Options: $74,202,612

Current Obligation: $67,151,922

Actual Outlays: $16,329,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0341N

IDV Type: FSS

Timeline