Treasury's $42.6M IT services contract awarded to Paradigm Solutions Corporation shows fair value with 5 bidders

Contract Overview

Contract Amount: $42,628,303 ($42.6M)

Contractor: Paradigm Solutions Corporation

Awarding Agency: Department of the Treasury

Start Date: 2004-12-15

End Date: 2012-12-31

Contract Duration: 2,938 days

Daily Burn Rate: $14.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICES FOR THE NOC/CSO/MAINFRAME/FACILITIES/ADI

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $42.6 million to PARADIGM SOLUTIONS CORPORATION for work described as: SERVICES FOR THE NOC/CSO/MAINFRAME/FACILITIES/ADI Key points: 1. Contract awarded competitively, indicating potential for good price discovery. 2. Duration of over 8 years suggests a long-term need for these IT services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. Services encompass critical IT functions for the Comptroller of the Currency. 5. The contract's value is moderate within the IT services sector. 6. No small business set-aside was utilized, potentially limiting small business participation.

Value Assessment

Rating: fair

The contract's total value of approximately $42.6 million over nearly 8 years suggests a moderate annual spend. Benchmarking against similar IT services contracts is challenging without more granular data on the specific services provided. However, the firm-fixed-price structure and competitive award provide some assurance of value. The per-unit cost is not readily available for direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under full and open competition. Five bidders participated in the competition, which is a healthy number and suggests a reasonable level of market interest. The presence of multiple bidders generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award would have. The five bids suggest that taxpayer dollars were used efficiently in acquiring these IT services.

Public Impact

The Office of the Comptroller of the Currency (OCC) benefits from continuous IT support for its core operations. Essential services for the NOC, CSO, mainframe, facilities, and ADI are delivered. The contract's impact is primarily within the District of Columbia, where the OCC is headquartered. The contract supports IT professionals and potentially other roles within Paradigm Solutions Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical IT infrastructure may pose risks.
Potential for scope creep over the extended performance period.
Limited visibility into specific performance metrics without further data.
No explicit small business subcontracting goals mentioned.

Positive Signals

Competitive award process suggests a fair market price was likely achieved.
Firm Fixed Price contract type provides cost certainty.
Award to a single entity simplifies contract management.
Services are critical to the functioning of a key financial regulatory body.
Long-term nature indicates a stable and predictable IT support environment.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. The market for these services is vast and highly competitive, with numerous firms offering a wide range of capabilities. The value of this contract, approximately $42.6 million over its term, is moderate within this sector. Comparable spending benchmarks would depend on the specific nature of the IT support, but it represents a significant investment in maintaining essential government IT infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication that Paradigm Solutions Corporation is a small business. This means that opportunities for small businesses to directly benefit from this prime contract are limited. However, it is possible that Paradigm Solutions Corporation may engage small businesses as subcontractors, though this is not explicitly stated in the provided data. The absence of set-aside provisions means the primary benefit accrues to the large business awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the Office of the Comptroller of the Currency (OCC) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Support Services
Computer Systems Design Services
IT Operations and Maintenance
Government IT Modernization
Cloud Computing Services (if applicable)
Cybersecurity Services (if applicable)

Risk Flags

Long contract duration may indicate potential for vendor lock-in.
Lack of specific performance metrics in summary data requires further investigation.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $42.6 million to PARADIGM SOLUTIONS CORPORATION. SERVICES FOR THE NOC/CSO/MAINFRAME/FACILITIES/ADI

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 $42.6 million.

What is the period of performance?

Start: 2004-12-15. End: 2012-12-31.

What is the specific breakdown of services provided under "SERVICES FOR THE NOC/CSO/MAINFRAME/FACILITIES/ADI"?

The provided data offers a high-level categorization of services including Network Operations Center (NOC), Computer Systems Operations (CSO), mainframe support, facilities management related to IT infrastructure, and Application Development and Integration (ADI). A detailed breakdown would typically be found in the contract's Statement of Work (SOW). This would specify the exact tasks, deliverables, service levels, and performance metrics associated with each component. For instance, NOC services might include 24/7 monitoring and incident response, while ADI could cover software development lifecycle support, system integration, and application maintenance. Understanding this breakdown is crucial for assessing the true scope and value of the contract.

How does the annual spending on this contract compare to other similar IT support contracts within the Department of the Treasury?

The total contract value is $42.6 million over approximately 8 years (2938 days), equating to an average annual spend of roughly $5.3 million. To compare this to other Treasury IT support contracts, one would need access to a comprehensive database of Treasury's IT spending. Key comparison points would include the number of bidders, contract type (e.g., FFP, T&M), duration, and the specific IT services rendered. Without such comparative data, it's difficult to definitively state if this contract represents high, low, or average spending relative to its peers. However, $5.3 million annually for comprehensive IT support for a significant bureau like the OCC is not an unusually large figure in the federal IT landscape.

What are the key performance indicators (KPIs) used to measure the success of Paradigm Solutions Corporation's performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In a typical IT services contract of this nature, KPIs would be defined in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). Common KPIs for IT support services include system uptime percentages, incident response times, resolution times for IT issues, user satisfaction ratings, and successful completion of project milestones for any development or integration tasks. The contracting officer's representative (COR) at the OCC would be responsible for monitoring these KPIs and ensuring Paradigm Solutions Corporation meets the contractual performance standards. Regular performance reviews would likely occur.

What is the track record of Paradigm Solutions Corporation with federal contracts, particularly within the Department of the Treasury?

Paradigm Solutions Corporation has been awarded this specific contract by the Department of the Treasury's Office of the Comptroller of the Currency. The data indicates this is a significant contract valued at over $42 million. To assess their broader track record, one would need to examine their contract history across all federal agencies. This would involve looking at the number of contracts awarded, their values, types (e.g., competitive vs. sole-source), performance ratings (if available), and any past performance issues or disputes. A review of the Federal Procurement Data System (FPDS) or other contract databases would provide a more comprehensive view of their federal contracting experience.

Given the 5 bidders, what was the range of proposed prices, and how did Paradigm Solutions Corporation's price compare?

The provided data indicates that the contract was competitively awarded with 5 bidders, but it does not include the specific bid prices submitted by each offeror, nor does it detail the price range. In a competitive procurement, the government evaluates proposals based on both technical merit and price. While the lowest price technically acceptable (LPTA) or best value trade-off process is used, the exact pricing details of competing offers are usually considered proprietary information. Therefore, without access to the source selection decision document or debriefing information, it is impossible to determine the price range or how Paradigm Solutions Corporation's winning bid compared to the others.

What is the historical spending trend for these specific IT services at the OCC over the last decade?

The provided data pertains to a single contract awarded in December 2004 with an end date in December 2012. To analyze historical spending trends for these specific IT services at the OCC over the last decade, one would need to aggregate data for all contracts related to NOC, CSO, mainframe, facilities IT, and ADI services awarded by the OCC during that period. This would involve querying procurement databases for contracts with similar service descriptions and agencies. Analyzing this aggregated data would reveal patterns in spending levels, identify major contract vehicles, and show if spending has increased, decreased, or remained stable over time, potentially indicating shifts in IT strategy or operational needs.

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: SIMPLIFIED ACQUISITION

Offers Received: 5

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: $42,628,303

Exercised Options: $42,628,303

Current Obligation: $42,628,303

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5869H

IDV Type: FSS

Timeline