Department of State awarded $26.3M for Red Hat solutions implementation and training to Ideal System Solutions, Inc

Contract Overview

Contract Amount: $26,352,742 ($26.4M)

Contractor: Ideal System Solutions, Inc.

Awarding Agency: Department of State

Start Date: 2017-09-30

End Date: 2023-03-29

Contract Duration: 2,006 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TO ASSIST WITH THE IMPLEMENTATION AND MATURATION OF THE RED HAT SOLUTIONS WITHIN THE DOS CA ENTERPRISE. THE GOAL IS FOR THE VENDOR TO FURNISH CA/CST/SO WITH CONSULTATION SERVICES, PRESENTATIONS AND WORKSHOPS, TRAINING, AND LICENSE MANAGEMENT TO PROVIDE THE KNOWLEDGE AND SKILLS NEEDED TO MOST EFFECTIVELY LEVERAGE AND UTILIZE RED HAT TECHNOLOGIES.IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $26.4 million to IDEAL SYSTEM SOLUTIONS, INC. for work described as: IGF::OT::IGF TO ASSIST WITH THE IMPLEMENTATION AND MATURATION OF THE RED HAT SOLUTIONS WITHIN THE DOS CA ENTERPRISE. THE GOAL IS FOR THE VENDOR TO FURNISH CA/CST/SO WITH CONSULTATION SERVICES, PRESENTATIONS AND WORKSHOPS, TRAINING, AND LICENSE MANAGEMENT TO PROVIDE THE KNOWLEDG… Key points: 1. The contract focuses on consultation, training, and license management for Red Hat technologies. 2. Performance period spans nearly six years, indicating a long-term need for Red Hat expertise. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The primary goal is to enhance the effective utilization of Red Hat technologies within the agency. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The vendor, Ideal System Solutions, Inc., has been tasked with knowledge transfer and skill development.

Value Assessment

Rating: good

The contract value of $26.3 million over nearly six years for specialized IT consulting and training appears reasonable given the scope. While direct comparisons are difficult without specific service benchmarks, the duration and comprehensive nature of the services (consultation, training, license management) suggest a significant investment in optimizing Red Hat technology. The firm-fixed-price structure provides cost certainty for the Department of State, though it places the onus on the contractor to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. The presence of 7 bids suggests a healthy level of competition for this specialized IT service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive bidding process likely resulted in a more favorable price for taxpayers compared to a sole-source award. Multiple bidders vying for the contract would have incentivized competitive pricing and potentially better service offerings.

Public Impact

The Department of State's CA/CST/SO divisions are the primary beneficiaries, gaining enhanced capabilities in leveraging Red Hat technologies. Services delivered include consultation, presentations, workshops, training, and license management. The geographic impact is centered within the District of Columbia, where the Department of State is headquartered. Workforce implications include upskilling and knowledge transfer to agency personnel for effective Red Hat technology utilization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Red Hat expertise becomes solely reliant on this contractor.
Risk of scope creep if initial consultation requirements are not clearly defined.
Dependence on contractor's ability to deliver effective and timely training.
Ensuring knowledge transfer is comprehensive and sustainable post-contract.

Positive Signals

Full and open competition suggests a robust selection process.
Firm-fixed-price contract provides budget certainty.
Long contract duration indicates a strategic investment in IT capabilities.
Focus on training and knowledge transfer promotes internal agency capacity building.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized support for Red Hat enterprise solutions. The market for IT consulting and training services is substantial, with numerous vendors offering expertise in various software platforms. The Department of State's investment aligns with government-wide efforts to modernize IT infrastructure and leverage open-source technologies effectively. Comparable spending benchmarks would typically involve other agencies procuring similar specialized support for enterprise software.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight 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 by the contract's public award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Consulting Services
Software Training
Enterprise Software Implementation
Open Source Software Support
Government IT Modernization Programs

Risk Flags

Long-term vendor dependency risk
Potential for knowledge transfer gaps
Ensuring sustained value beyond contract term

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.4 million to IDEAL SYSTEM SOLUTIONS, INC.. IGF::OT::IGF TO ASSIST WITH THE IMPLEMENTATION AND MATURATION OF THE RED HAT SOLUTIONS WITHIN THE DOS CA ENTERPRISE. THE GOAL IS FOR THE VENDOR TO FURNISH CA/CST/SO WITH CONSULTATION SERVICES, PRESENTATIONS AND WORKSHOPS, TRAINING, AND LICENSE MANAGEMENT TO PROVIDE THE KNOWLEDGE AND SKILLS NEEDED TO MOST EFFECTIVELY LEVERAGE AND UTILIZE RED HAT TECHNOLOGIES.IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is IDEAL SYSTEM SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2017-09-30. End: 2023-03-29.

What is the track record of Ideal System Solutions, Inc. with the Department of State and other federal agencies?

Ideal System Solutions, Inc. has a history of contracts with federal agencies, including the Department of State. Analyzing their past performance on similar IT services contracts is crucial. This includes examining past performance evaluations, any documented issues or successes, and their overall financial stability. A review of their contract history would reveal if they have consistently met performance requirements, managed projects effectively, and adhered to contract terms. Understanding their prior experience provides insight into their capability to successfully execute the current Red Hat solutions contract and highlights potential risks or strengths.

How does the per-hour or per-day rate for the consulting services compare to market benchmarks?

Determining the precise per-hour or per-day rate requires breaking down the total contract value by the estimated labor hours or duration of consulting services. Without this granular data, a direct comparison to market benchmarks is challenging. However, the overall contract value of $26.3 million spread over nearly six years suggests an average annual value of approximately $4.4 million. This figure encompasses all aspects of the contract, including training and license management, not just consulting. To benchmark effectively, one would need to compare the contractor's proposed rates for specific skill sets (e.g., Red Hat certified architects, trainers) against industry surveys and rates paid by other federal agencies for similar expertise.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The success of this contract would likely be measured through a combination of performance metrics tied to the stated goals. Key Performance Indicators (KPIs) could include the successful implementation and operationalization of Red Hat solutions, the number of agency personnel trained and certified, improvements in system performance or efficiency attributed to Red Hat technologies, and the effective management of Red Hat licenses. Customer satisfaction surveys from the CA/CST/SO divisions, timely delivery of consultation reports and workshops, and adherence to project timelines would also serve as critical KPIs. The contract's firm-fixed-price nature implies that meeting these defined performance standards is paramount for the contractor's compensation.

What is the historical spending trend for Red Hat solutions or similar IT services at the Department of State?

Analyzing historical spending trends for Red Hat solutions or comparable IT services at the Department of State is essential for context. This contract, valued at $26.3 million over nearly six years, represents a significant, long-term investment. Understanding if this is an increase or decrease in spending compared to previous periods for similar services can indicate shifts in IT strategy or budget priorities. Examining past contracts for Red Hat support, Linux administration, or enterprise IT consulting would reveal patterns in contract duration, value, and competition levels. Such analysis helps determine if the current award is consistent with historical patterns or represents a new direction in technology adoption and support.

What are the potential risks associated with relying on a single vendor for Red Hat implementation and training?

Relying on a single vendor, even one selected through full and open competition, carries inherent risks. One primary concern is vendor lock-in, where the agency becomes overly dependent on the contractor's specific knowledge and methodologies, making it difficult to switch vendors or bring the expertise in-house. There's also a risk that the vendor's focus or resources might shift, potentially impacting service delivery. Furthermore, if the vendor fails to adequately transfer knowledge, the agency might remain reliant on them long-term, potentially at higher costs. Mitigating these risks involves robust knowledge transfer clauses, clear exit strategies, and potentially cross-training with other internal resources or vendors.

How does the duration of this contract (nearly 6 years) align with typical IT modernization lifecycles?

A contract duration of nearly six years for IT implementation and training is substantial and suggests a strategic, long-term commitment to optimizing Red Hat technologies. IT modernization lifecycles can vary, but complex enterprise solutions often require extended periods for full implementation, integration, training, and ongoing support. This duration implies that the Department of State views Red Hat as a core component of its IT infrastructure for the foreseeable future. While shorter contracts might focus on specific project phases, a longer duration like this often indicates a need for sustained expertise, continuous improvement, and adaptation to evolving technological landscapes within the Red Hat ecosystem.

Industry Classification

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

Solicitation ID: 890947-01

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5600 ROWLAND RD STE 220, MINNETONKA, MN, 55343

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $28,126,168

Exercised Options: $28,126,168

Current Obligation: $26,352,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline