State Department IT services contract awarded to ORKAND CORPORATION for over $143 million

Contract Overview

Contract Amount: $14,353,168 ($14.4M)

Contractor: Orkand Corporation, the

Awarding Agency: Department of State

Start Date: 2001-03-21

End Date: 2010-09-30

Contract Duration: 3,480 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: NOT REPORTED

Sector: IT

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $14.4 million to ORKAND CORPORATION, THE for work described as: Key points: 1. Contract value exceeds $143 million over its lifecycle, indicating a significant investment in IT services. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. A long duration of 3480 days (approximately 9.5 years) implies a need for sustained IT support. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 5. The contract's performance period spans from 2001 to 2010, reflecting IT needs from a past era. 6. The award type 'DO' suggests a specific type of government order, potentially related to defense or essential services.

Value Assessment

Rating: fair

The total award amount of over $143 million for nearly a decade of IT services suggests a substantial investment. Benchmarking this against similar, long-term IT support contracts for large federal agencies is necessary for a precise value assessment. Given the contract's age, current market rates for comparable services may differ significantly. The absence of specific performance metrics or detailed cost breakdowns makes a definitive value-for-money judgment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this significant IT services requirement. While two bidders participated, a higher number would typically indicate more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings.

Public Impact

The Department of State benefited from sustained IT support, crucial for its global operations. Services likely encompassed a wide array of computer-related functions, supporting diplomatic and administrative tasks. The contract's duration suggests a long-term impact on the agency's technological infrastructure and capabilities. Workforce implications could include the direct employment of IT professionals by the contractor and potential indirect impacts on state department personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract awarded in 2001, services rendered over a decade ago may not reflect current IT needs or market conditions.
Limited competition with only two bidders could have resulted in less competitive pricing than a more crowded field.
Lack of detailed performance data makes it difficult to assess the effectiveness and efficiency of the services provided.
The broad NAICS code 'Other Computer Related Services' lacks specificity, making it hard to pinpoint the exact nature of services and associated costs.

Positive Signals

Awarded through full and open competition, adhering to principles of fair and transparent procurement.
The long contract duration suggests a stable and reliable IT support framework was established for the agency.
The contractor, ORKAND CORPORATION, was selected, implying they met the technical and financial requirements of the State Department at the time.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. The IT services market is vast and competitive, with numerous firms offering a wide range of solutions. Contracts of this magnitude for federal agencies are common, reflecting the critical role of IT in government operations. Benchmarking against similar long-term IT support contracts would require detailed service scope and performance data, which is not fully available here.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus was likely on large, capable IT service providers able to meet the extensive requirements of the Department of State.

Oversight & Accountability

Oversight mechanisms for this contract would have been managed by the Department of State's contracting officers and program managers. Accountability would be tied to the terms and conditions outlined in the contract, including service level agreements and performance standards. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Long-Term IT Support Services
Computer Systems Design Services

Risk Flags

Historical Data
Limited Competition Data
Lack of Specific Service Details
Outdated Technology Context

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.4 million to ORKAND CORPORATION, THE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ORKAND CORPORATION, THE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2001-03-21. End: 2010-09-30.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad classification suggests a wide range of potential IT support, which could include IT infrastructure management, network support, software maintenance and development, cybersecurity services, help desk support, and IT consulting. Without more specific contract line item details or a Statement of Work, the precise nature of the services remains generalized. Given the era (2001-2010), services likely focused on maintaining and upgrading existing systems, potentially including early stages of network modernization and data management.

How does the $143 million contract value compare to similar IT service contracts awarded by the State Department during that period?

Comparing the $143 million value requires context regarding the specific IT needs and scope of services. The Department of State, like other large federal agencies, procures significant IT support. Contracts awarded between 2001 and 2010 for comprehensive IT services could range from tens to hundreds of millions of dollars, depending on the duration, complexity, and number of users supported. This contract's value appears substantial, suggesting it covered a broad spectrum of IT functions over a long period. A direct comparison would necessitate identifying contracts with similar NAICS codes, durations, and service scopes awarded by the State Department or comparable agencies within the same timeframe.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data. Typically, for IT service contracts of this nature and duration, SLAs would focus on metrics such as system uptime, response times for technical support, resolution times for issues, network performance, and security compliance. The effectiveness of the contractor's performance would be measured against these agreed-upon standards. The absence of publicly available KPI/SLA details limits the ability to quantitatively assess the contractor's performance and the value derived from the services.

What is the track record of ORKAND CORPORATION with federal IT contracts?

Information on ORKAND CORPORATION's broader track record with federal IT contracts is not detailed here beyond this specific award. However, being awarded a contract of this magnitude by the Department of State suggests they possessed the necessary qualifications, experience, and financial stability to meet the government's requirements at the time. Further investigation into other contracts awarded to ORKAND CORPORATION, their performance history, and any past performance evaluations would be needed for a comprehensive assessment of their track record.

Given the contract ended in 2010, what are the implications of its historical nature on current IT spending analysis?

The historical nature of this contract (2001-2010) means its data points are less relevant for analyzing current IT spending trends, technology adoption, or market pricing. Technology evolves rapidly, and IT service needs and costs from the early 2000s differ significantly from today's landscape, which is dominated by cloud computing, advanced cybersecurity threats, and AI integration. While it provides insight into past procurement practices and the State Department's IT investments at the time, it does not reflect current requirements, vendor capabilities, or cost structures. Analyzing contemporary contracts is essential for understanding present-day federal IT spending.

Industry Classification

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: NOT REPORTED (NO)

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 7799 LEESBURG PIKE 700N, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,353,168

Exercised Options: $14,353,168

Current Obligation: $14,353,168

Parent Contract

Parent Award PIID: SLMAQM01D0051

IDV Type: IDC

Timeline