Vistronix LLC awarded $61.6M IT contract by State Department for computer systems design
Contract Overview
Contract Amount: $61,625,023 ($61.6M)
Contractor: Vistronix, LLC
Awarding Agency: Department of State
Start Date: 2016-08-05
End Date: 2019-06-01
Contract Duration: 1,030 days
Daily Burn Rate: $59.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT EQUIPMENT/SUPPLIES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $61.6 million to VISTRONIX, LLC for work described as: IT EQUIPMENT/SUPPLIES Key points: 1. Contract value of $61.6 million over 1030 days indicates significant investment in IT infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract suggests a long-term need for these computer systems design services. 5. The award to Vistronix, LLC highlights a specific vendor's role in supporting State Department IT. 6. The contract's focus on computer systems design implies support for critical operational functions.
Value Assessment
Rating: good
The contract value of $61.6 million for computer systems design services over approximately 2.8 years appears reasonable given the scope. Benchmarking against similar large-scale IT design contracts for federal agencies suggests this falls within expected spending ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value management. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the overall scale aligns with significant IT modernization efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple bidders were likely considered. The fact that it was competed suggests that the agency sought the best value through a competitive process. The number of bidders is not specified, but the 'full and open' nature implies a robust competition that should drive competitive pricing and innovation.
Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by leveraging market forces to obtain favorable pricing and quality services.
Public Impact
The primary beneficiaries are the Department of State personnel who will utilize the enhanced computer systems. Services delivered include computer systems design, crucial for the agency's operational efficiency and data management. The geographic impact is likely concentrated in Washington D.C., where the State Department is headquartered. Workforce implications may include the need for specialized IT professionals to implement and maintain the designed systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the designed systems are proprietary or require specialized maintenance.
- Dependence on a single contractor for critical IT infrastructure design could pose risks if performance falters.
- Scope creep could become an issue if the initial design requirements are not clearly defined and managed.
Positive Signals
- Firm fixed-price contract provides cost predictability and reduces the risk of budget overruns.
- Full and open competition suggests a healthy market response and potential for competitive pricing.
- The contract duration implies a commitment to a stable IT solution, fostering long-term operational support.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer systems design. The federal IT market is substantial, with agencies consistently investing in modernizing their technological infrastructure to improve efficiency and security. Contracts for systems design are critical for developing and implementing the complex networks and software solutions that government operations rely on. Comparable spending benchmarks in this area vary widely based on complexity, but significant investments are common for agencies like the Department of State.
Small Business Impact
The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was awarded based on overall best value rather than specific small business goals. While Vistronix, LLC may engage small businesses as subcontractors, the primary award was not directed towards small business set-asides. This approach is common for large, complex IT services where specialized capabilities are prioritized.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal procurement databases like FPDS, which record contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Department of State IT Modernization Programs
- Federal Civilian Agency IT Services Contracts
- Computer Systems Design and Integration Services
- Information Technology Professional Services
Risk Flags
- Potential for scope creep due to the long duration and complexity of IT design projects.
- Reliance on a single vendor for critical system design could pose long-term support risks.
- The 'exclusion of sources' clause warrants scrutiny to ensure fair competition was maintained.
Tags
it-services, computer-systems-design, department-of-state, firm-fixed-price, full-and-open-competition, large-contract, information-technology, federal-contract, vistronix-llc, delivery-order, district-of-columbia
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $61.6 million to VISTRONIX, LLC. IT EQUIPMENT/SUPPLIES
Who is the contractor on this award?
The obligated recipient is VISTRONIX, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $61.6 million.
What is the period of performance?
Start: 2016-08-05. End: 2019-06-01.
What specific computer systems design services were included in this $61.6 million contract?
The contract, awarded to Vistronix, LLC, falls under NAICS code 541512 (Computer Systems Design Services). While the exact scope is not detailed in the provided data, these services typically encompass the design, development, and integration of complex computer systems. This could include network architecture, software integration, hardware configuration, cybersecurity design, and the overall planning for IT infrastructure. The substantial value suggests a comprehensive project, potentially involving the redesign or significant upgrade of critical State Department IT systems to enhance functionality, security, or scalability.
How does the $61.6 million award compare to historical spending on similar IT services by the Department of State?
The $61.6 million award represents a significant investment in IT services. Historical spending patterns for the Department of State show consistent, substantial outlays for IT modernization and support. While specific comparisons require detailed analysis of past contracts for computer systems design, this figure aligns with the agency's known needs for robust and secure IT infrastructure to support global operations. It suggests a major project or a series of related projects rather than routine maintenance, reflecting the ongoing effort to keep its technological capabilities current and effective.
What are the potential risks associated with a firm fixed-price contract of this magnitude and duration?
Firm fixed-price (FFP) contracts aim to provide cost certainty, but risks can still emerge. For a contract of this size ($61.6M) and duration (1030 days), the primary risk is that the initial price may not adequately account for unforeseen technical challenges, evolving requirements, or significant market fluctuations in labor or component costs. If the contractor underestimates the complexity or effort required, they may incur losses. Conversely, if the government's requirements change substantially, contract modifications could lead to price increases, negating some of the FFP benefits. Careful scope definition and change management are crucial to mitigate these risks.
What does 'full and open competition after exclusion of sources' imply about the bidding process?
'Full and open competition after exclusion of sources' is a specific procurement method. It means the solicitation was made available to all responsible sources (full and open competition), but certain sources were excluded from consideration for specific, justifiable reasons (e.g., national security, prior performance issues, or specific technical requirements that only a limited number of vendors could meet). This implies that while the intent was broad competition, there were specific parameters that narrowed the field. The 'after exclusion of sources' part suggests a potential deviation from a purely unrestricted competition, requiring justification.
What is the significance of the NAICS code 541512 (Computer Systems Design Services) for this contract?
The North American Industry Classification System (NAICS) code 541512 signifies that the primary purpose of this contract is for services related to the design of computer systems. This includes activities like analyzing user needs, designing system architecture, developing software specifications, integrating hardware and software, and providing consulting on IT infrastructure. It distinguishes this contract from those focused purely on hardware procurement, software development (which might fall under 541511), or IT support services (541513). This code confirms the contract's focus on the strategic planning and architectural aspects of the State Department's IT.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: OFFICE SUPPLIES AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)
Address: 11091 SUNSET HILLS RD STE 700, RESTON, VA, 20190
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,625,023
Exercised Options: $61,625,023
Current Obligation: $61,625,023
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,033,310
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS06F0629Z
IDV Type: GWAC
Timeline
Start Date: 2016-08-05
Current End Date: 2019-06-01
Potential End Date: 2019-06-01 00:00:00
Last Modified: 2021-08-31
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