State Department's $16.9M IV&V contract for Consular Affairs awarded to American Systems Corp

Contract Overview

Contract Amount: $16,895,170 ($16.9M)

Contractor: American Systems Corporation

Awarding Agency: Department of State

Start Date: 2006-06-19

End Date: 2011-07-21

Contract Duration: 1,858 days

Daily Burn Rate: $9.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: INDEPENDENT VERIFICATION & VALIDATION SERVICES FOR CONSULAR AFFAIRS

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 $16.9 million to AMERICAN SYSTEMS CORPORATION for work described as: INDEPENDENT VERIFICATION & VALIDATION SERVICES FOR CONSULAR AFFAIRS Key points: 1. The contract was awarded competitively, suggesting potential for good value. 2. The duration of the contract (over 5 years) indicates a long-term need for these services. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight. 4. The NAICS code 541519 points to a broad category of 'Other Computer Related Services'. 5. The contract was a delivery order under a larger contract vehicle. 6. The award was made to a single contractor, American Systems Corporation.

Value Assessment

Rating: fair

Benchmarking the value of this specific $16.9 million contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Award Fee (CPAF) structure allows for flexibility but can lead to higher costs if not managed tightly. Comparing it to similar Independent Verification and Validation (IV&V) services for large IT programs within the federal government would provide better context on whether the pricing was competitive and delivered good value for the services rendered over its five-year period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The 'full-and-open' competition suggests a robust process aimed at achieving the best possible price and performance. The number of bidders is not specified, but a competitive award generally fosters price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it typically drives down costs and ensures that the government receives high-quality services at a reasonable price through market forces.

Public Impact

The primary beneficiaries are the Department of State's Consular Affairs, which receives critical support for its systems. The services delivered are Independent Verification and Validation (IV&V), crucial for ensuring the quality and reliability of IT systems. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. The contract supports the IT workforce by engaging a contractor for specialized technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure can lead to cost overruns if performance incentives are not carefully aligned with program goals and if oversight is insufficient.
The broad NAICS code 'Other Computer Related Services' might obscure the specific nature of the services, making detailed performance and cost analysis more difficult.
The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which can sometimes limit transparency on the overall value and scope.

Positive Signals

The contract was awarded through full and open competition, indicating a fair and transparent process.
The award to American Systems Corporation suggests they possess the necessary qualifications and experience for IV&V services.
The long contract duration (over 5 years) implies a sustained need and potentially a successful, ongoing relationship for critical services.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on Independent Verification and Validation (IV&V). The federal IT services market is substantial, with agencies consistently investing in ensuring the quality and security of their complex systems. IV&V services are critical for large-scale IT projects, providing an objective assessment of system development and performance. Comparable spending benchmarks would typically be found within IT services contracts awarded by agencies like the Department of Defense or other large civilian agencies undertaking significant system modernization efforts.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award was made to American Systems Corporation, a company that may or may not qualify as a small business depending on its size standards. Further analysis would be needed to determine if subcontracting opportunities were available to small businesses and what the overall impact on the small business ecosystem might be.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to ensure that award fees are justified. Transparency is generally facilitated through contract award databases, but detailed internal oversight mechanisms and Inspector General jurisdiction would depend on specific departmental policies and the nature of any potential issues.

Related Government Programs

Department of State IT Modernization Programs
Federal Independent Verification and Validation (IV&V) Services
Consular Affairs IT Systems Support
Cost Plus Award Fee Contracts
Competitive Delivery Orders

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
Broad NAICS code may limit detailed analysis of service specifics.
Delivery Order under a larger vehicle may obscure total contract value and scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $16.9 million to AMERICAN SYSTEMS CORPORATION. INDEPENDENT VERIFICATION & VALIDATION SERVICES FOR CONSULAR AFFAIRS

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2006-06-19. End: 2011-07-21.

What was the specific scope of work for the Independent Verification and Validation (IV&V) services provided under this contract?

The contract, valued at approximately $16.9 million, was for Independent Verification and Validation (IV&V) services for the Department of State's Consular Affairs. While the specific deliverables are not detailed in the provided data, IV&V services typically involve objective assessments of IT systems throughout their lifecycle. This includes reviewing system design, development processes, testing procedures, and operational performance to ensure they meet requirements, are secure, and function as intended. For Consular Affairs, these systems likely support critical functions such as visa processing, passport issuance, and citizen services abroad, making rigorous IV&V essential for maintaining operational integrity and security.

How did American Systems Corporation's performance compare to other potential contractors for similar IV&V services?

The provided data indicates that this contract was awarded through 'full-and-open' competition, suggesting that American Systems Corporation was selected from a pool of potentially multiple bidders. Without access to the specific evaluation criteria used during the procurement process or post-award performance reviews, a direct comparison to other contractors is not possible. However, the fact that they were awarded the contract implies they met or exceeded the government's requirements and offered a competitive proposal in terms of technical approach, past performance, and price. The Cost Plus Award Fee (CPAF) structure also suggests that their performance was subject to ongoing evaluation, with potential for award fees based on achieving specific performance targets.

What are the typical risks associated with Cost Plus Award Fee (CPAF) contracts, and how might they have been mitigated for this State Department contract?

Cost Plus Award Fee (CPAF) contracts carry inherent risks, primarily the potential for cost overruns if the 'cost-plus' element is not tightly controlled and the 'award fee' is not rigorously tied to objective performance metrics. Contractors may be incentivized to incur costs to maximize their base fee, and the award fee component can sometimes be subjective. For this Department of State contract, risks could have been mitigated through strong government oversight, clearly defined performance standards and award criteria, regular audits, and proactive communication between the contracting officer and the contractor. The IV&V nature of the service also implies an independent assessment role, which could provide an additional layer of scrutiny on project costs and performance.

What is the historical spending pattern for IV&V services within the Department of State's Consular Affairs, and how does this contract fit in?

The provided data only details this single contract award of $16.9 million from 2006 to 2011. To understand the historical spending pattern for IV&V services within Consular Affairs, one would need to analyze broader contract databases for the Department of State, specifically looking for contracts related to IT services, system development, and verification/validation over a longer period. This $16.9 million contract represents a significant investment over its five-year duration, suggesting a substantial need for independent oversight of critical IT systems supporting consular operations. Its placement as a competitive delivery order indicates it was likely part of a larger strategic IT initiative or framework contract.

How does the NAICS code 541519 ('Other Computer Related Services') adequately capture the specialized nature of IV&V services?

The NAICS code 541519, 'Other Computer Related Services,' is a broad classification that encompasses a wide range of IT services not specifically defined under other codes. While it can technically include IV&V, it lacks the specificity that might be found in codes related to software development, systems integration, or IT consulting. This broadness can sometimes make it challenging to precisely categorize and analyze spending on specialized services like IV&V. For this contract, it suggests that the government used a general code, potentially because the scope of work was diverse or because a more specific code wasn't readily available or applicable within the existing procurement framework. More granular analysis would require examining the contract's statement of work.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 13990 PARKEAST CIR, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,845,361

Exercised Options: $17,529,626

Current Obligation: $16,895,170

Parent Contract

Parent Award PIID: GS07T00BGD0030

IDV Type: GWAC

Timeline