Treasury's $29M IT contract for administrative systems management awarded to PRAGMATICS, LLC

Contract Overview

Contract Amount: $29,116,432 ($29.1M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of the Treasury

Start Date: 2009-07-20

End Date: 2013-12-31

Contract Duration: 1,625 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: O&M OF SUPERVISIONS AND ADMINISTRATIVE SYSTEMS

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 $29.1 million to PRAGMATICS, LLC for work described as: O&M OF SUPERVISIONS AND ADMINISTRATIVE SYSTEMS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 4 years indicates a significant, long-term need for these services. 3. The North American Industry Classification System (NAICS) code 541513 points to a focus on computer facilities management. 4. The contract was awarded as a Labor Hours type, which can offer flexibility but requires careful monitoring. 5. The small business set-aside flag is false, indicating it was not specifically targeted for small businesses. 6. The contract's value of approximately $29 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Labor Hours pricing structure can lead to cost overruns if not managed tightly. However, the award was made through full and open competition, which typically drives more competitive pricing than sole-source awards. Further analysis would require understanding the specific services delivered and the labor rates negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders is better than one, a higher number of bids often leads to more aggressive pricing and a wider range of solutions.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open competition, but the limited number of bidders might mean that the full cost-saving potential was not realized.

Public Impact

The Office of the Comptroller of the Currency (OCC) within the Department of the Treasury is the primary beneficiary, receiving IT support for administrative systems. Services delivered likely include the maintenance, operation, and administrative support of critical IT infrastructure. The contract's impact is primarily within the District of Columbia, where the agency is located. The contract supports IT professionals and administrative staff involved in managing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to the Labor Hours contract type if not rigorously managed.
Limited competition (2 bidders) may have resulted in a higher price than a more robustly competed contract.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.

Positive Signals

Awarded through full and open competition, allowing for a broad range of potential bidders.
The contract duration suggests a stable and ongoing need, indicating the services are essential.
The contractor, PRAGMATICS, LLC, has experience in IT services, potentially bringing expertise to the role.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT facilities management and administrative systems. The market for IT services to government agencies is substantial, with agencies constantly seeking to modernize and maintain their technological infrastructure. Comparable spending benchmarks would involve looking at other government contracts for similar IT support services, particularly those managed by financial regulatory bodies.

Small Business Impact

The contract was not set aside for small businesses, as indicated by 'sb: false'. This means that both large and small businesses were eligible to compete. There is no explicit information provided regarding subcontracting plans for small businesses. The lack of a small business set-aside suggests that the primary focus was on obtaining the best overall solution and price from any qualified vendor, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of the Comptroller of the Currency (OCC) and the Department of the Treasury. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would depend on whether the IG has oversight authority over the specific programs and contracts within the OCC.

Related Government Programs

IT Operations and Maintenance
Computer Facilities Management Services
Government IT Support Contracts
Administrative Systems Management
Department of the Treasury IT Spending

Risk Flags

Potential for cost overruns due to Labor Hours contract type.
Limited competition (2 bidders) may impact price competitiveness.
Lack of specific performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $29.1 million to PRAGMATICS, LLC. O&M OF SUPERVISIONS AND ADMINISTRATIVE SYSTEMS

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, LLC.

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 $29.1 million.

What is the period of performance?

Start: 2009-07-20. End: 2013-12-31.

What is the track record of PRAGMATICS, LLC in performing similar government IT contracts?

PRAGMATICS, LLC has a history of performing IT services for the federal government. While specific details on past performance for similar administrative systems management contracts would require a deeper dive into contract databases, their award for this $29 million contract by the Department of the Treasury suggests they possess the necessary qualifications and experience. Analyzing their past performance on other contracts, including any reported issues or successes, would provide a more comprehensive understanding of their capabilities and reliability in delivering complex IT solutions.

How does the awarded price compare to market rates for similar IT facilities management services?

Determining the precise value-for-money requires a detailed comparison against market rates for Computer Facilities Management Services (NAICS 541513) in the Washington D.C. metropolitan area. Factors such as the specific services included (e.g., hardware maintenance, software support, network management, data center operations), the labor mix, and the level of service required (e.g., uptime guarantees, response times) significantly influence pricing. Given the contract was awarded through full and open competition, it suggests the price was deemed competitive at the time of award. However, without access to the negotiated labor rates and a detailed breakdown of the services, a definitive benchmark against market rates is difficult.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for IT facilities management contracts, KPIs would focus on aspects like system uptime and availability, response times for issue resolution, successful completion of maintenance tasks, security compliance, and user satisfaction. The Labor Hours contract type often relies on detailed task orders and performance monitoring rather than fixed deliverables, making the oversight of contractor performance crucial. The absence of explicit KPIs in the summary data limits the ability to quantitatively assess the contractor's performance and the overall effectiveness of the services.

What is the historical spending trend for administrative systems management within the Office of the Comptroller of the Currency?

Analyzing historical spending trends for administrative systems management within the Office of the Comptroller of the Currency (OCC) would provide context for the $29 million awarded to PRAGMATICS, LLC. This would involve examining prior contracts for similar services, including their values, durations, and awarded contractors. A trend of increasing or consistently high spending might indicate a growing reliance on outsourced IT support or the critical nature of these systems. Conversely, a decrease could suggest consolidation, in-sourcing, or shifts in technology strategy. Without access to historical OCC procurement data, it's impossible to establish these trends.

What are the potential risks associated with a Labor Hours contract type for this service?

Labor Hours contracts, like the one awarded to PRAGMATICS, LLC, carry inherent risks, primarily related to cost control. Since payment is based on the hours worked by contractor personnel and their labor rates, there is a risk of cost overruns if the scope of work expands or if the contractor's efficiency is lower than anticipated. Effective management requires rigorous monitoring of hours, task completion, and adherence to the original scope. Without strong oversight and clear task definitions, the total cost can exceed initial estimates. This contract type offers flexibility but demands diligent administration to ensure value for money and prevent scope creep.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7926 JONES BRANCH DR STE 711, MC LEAN, VA, 90

Business Categories: Asian Pacific American Owned Business, Category Business, Federally Funded Research and Development Corp, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,116,432

Exercised Options: $29,116,432

Current Obligation: $29,116,432

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TCC09HQD0013

IDV Type: IDC

Timeline