Treasury's $14M Telecommunication Services Contract with Paradigm Solutions Corporation Raises Questions on Value and Competition
Contract Overview
Contract Amount: $13,969,439 ($14.0M)
Contractor: Paradigm Solutions Corporation
Awarding Agency: Department of the Treasury
Start Date: 2004-10-01
End Date: 2012-12-31
Contract Duration: 3,013 days
Daily Burn Rate: $4.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TELECOMMUNICATION SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219
Plain-Language Summary
Department of the Treasury obligated $14.0 million to PARADIGM SOLUTIONS CORPORATION for work described as: TELECOMMUNICATION SERVICES Key points: 1. The contract awarded to Paradigm Solutions Corporation for telecommunication services represents a significant expenditure of $13,969,438.5. 2. The contract was awarded as a competitive delivery order, suggesting some level of market engagement. 3. The duration of the contract (3013 days) and its fixed-price nature warrant scrutiny for potential cost overruns or underperformance. 4. The sector is IT services, specifically Computer Systems Design Services, a common area for government contracting.
Value Assessment
Rating: questionable
The contract's total value of nearly $14 million over approximately 8 years suggests a substantial investment. Without specific performance metrics or benchmarks for similar telecommunication services contracts, it is difficult to definitively assess if the pricing was optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a competitive delivery order, the competition method implies that multiple vendors were considered. However, the extent of the competition and the pricing discovery process are not fully detailed, leaving room for potential inefficiencies.
Taxpayer Impact: The nearly $14 million spent on this contract represents taxpayer funds. Ensuring competitive pricing and effective service delivery is crucial for maximizing the value of this investment.
Public Impact
Taxpayers may question the long-term commitment and cost-effectiveness of this telecommunication services contract. The duration of the contract raises concerns about technological obsolescence and the ability to adapt to evolving needs. Transparency in the competitive bidding process for such large contracts is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (3013 days)
- Lack of detailed performance metrics
- Potential for price creep in fixed-price contracts over extended periods
Positive Signals
- Awarded via competitive delivery order
- Firm Fixed Price contract type can provide cost certainty if well-defined
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Government spending in this area is substantial, and benchmarks for similar telecommunication services contracts are crucial for evaluating value.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract would involve monitoring performance against contract requirements, ensuring adherence to the fixed-price agreement, and verifying that the services provided meet the needs of the Office of the Comptroller of the Currency throughout its duration.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Office of the Comptroller of the Currency Programs
Risk Flags
- Long contract duration may lead to outdated technology or services.
- Lack of detailed information on competition limits assessment of price fairness.
- Potential for cost inefficiencies in fixed-price contracts over extended periods.
- Need for clear performance metrics to ensure value for money.
Tags
computer-systems-design-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $14.0 million to PARADIGM SOLUTIONS CORPORATION. TELECOMMUNICATION SERVICES
Who is the contractor on this award?
The obligated recipient is PARADIGM SOLUTIONS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2004-10-01. End: 2012-12-31.
What specific telecommunication services were procured under this contract, and how did their scope align with the agency's evolving needs over an 8-year period?
The contract was for 'Computer Systems Design Services' (NAICS 541512), which can encompass a broad range of IT-related support, including telecommunications infrastructure. Given the 3013-day duration, it's crucial to understand if the scope was flexible enough to adapt to technological advancements and changing agency requirements without necessitating costly modifications or leading to service gaps.
How robust was the competitive process for this delivery order, and what mechanisms were in place to ensure the best possible price discovery for the government?
While designated as a 'COMPETITIVE DELIVERY ORDER,' the specifics of the competition are not detailed. Understanding the number of bidders, the evaluation criteria, and the negotiation process is vital. For a contract of this magnitude, ensuring thorough price analysis and market research would have been critical to achieving fair and reasonable pricing for the taxpayer.
What performance metrics were established, and how effectively were they used to measure the value and success of Paradigm Solutions Corporation's services throughout the contract's lifecycle?
The effectiveness of this contract hinges on the established performance metrics and their rigorous application. Without clear metrics for service quality, uptime, and responsiveness, it's challenging to ascertain if the government received optimal value for the nearly $14 million expenditure. Post-contract review of performance data would be essential for this assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CACI International Inc (UEI: 045534641)
Address: 6110 EXECUTIVE BLVD, ROCKVILLE, MD, 20852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $13,969,439
Exercised Options: $13,969,439
Current Obligation: $13,969,439
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F5869H
IDV Type: FSS
Timeline
Start Date: 2004-10-01
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2021-11-25
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