Treasury's $12.9M IT Hosting Contract with IMMIXTECHNOLOGY INC Raises Questions on Value and Competition
Contract Overview
Contract Amount: $12,940,387 ($12.9M)
Contractor: Immixtechnology Inc
Awarding Agency: Department of the Treasury
Start Date: 2008-07-25
End Date: 2011-07-31
Contract Duration: 1,101 days
Daily Burn Rate: $11.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HOSTING AND INFRASTRUCTURE SUPPORT SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.9 million to IMMIXTECHNOLOGY INC for work described as: HOSTING AND INFRASTRUCTURE SUPPORT SERVICES Key points: 1. The contract awarded to IMMIXTECHNOLOGY INC for hosting and infrastructure support services totals $12.9 million. 2. Competition was competitive, indicated by 'COMPETITIVE DELIVERY ORDER', but the specific impact on price discovery needs further analysis. 3. Potential risks include the firm fixed price structure potentially not adapting to evolving infrastructure needs. 4. The sector is IT, specifically Computer Systems Design Services, a common area for government outsourcing.
Value Assessment
Rating: fair
The $12.9 million contract value for hosting and infrastructure support appears moderate for a three-year duration. Benchmarking against similar government contracts for IT infrastructure services would be necessary to definitively assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded as a 'COMPETITIVE DELIVERY ORDER', suggesting a competitive bidding process. However, the specific details of the competition and how price discovery was achieved are not fully detailed, leaving room for potential optimization.
Taxpayer Impact: While the competitive nature suggests a reasonable price was sought, the ultimate taxpayer impact depends on the efficiency and effectiveness of the services delivered over the contract's life.
Public Impact
Government reliance on external vendors for critical IT infrastructure. Potential for cost savings through competitive bidding in IT services. Ensuring data security and service continuity with third-party providers. The role of IT infrastructure in supporting essential government functions like tax collection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed price discovery information.
- Firm fixed price may not be optimal for dynamic IT needs.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded through a competitive process.
- Clear contract duration and defined services.
- Supports essential functions of the Bureau of the Fiscal Service.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Government spending in this area is substantial, with benchmarks varying widely based on service scope, complexity, and duration. This $12.9M contract is a moderate-sized award for infrastructure support.
Small Business Impact
The 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
The contract was awarded by the Department of the Treasury's Bureau of the Fiscal Service. Oversight would typically involve contract management officials monitoring performance, adherence to terms, and financial accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of detailed competition metrics.
- Potential for firm fixed price to be suboptimal for IT services.
- Limited insight into specific service deliverables.
- No clear indication of small business participation.
Tags
computer-systems-design-services, department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.9 million to IMMIXTECHNOLOGY INC. HOSTING AND INFRASTRUCTURE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is IMMIXTECHNOLOGY INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2008-07-25. End: 2011-07-31.
What specific IT infrastructure services were included in this $12.9 million contract, and how do they align with the Bureau of the Fiscal Service's core mission?
The contract covers 'HOSTING AND INFRASTRUCTURE SUPPORT SERVICES' under NAICS code 541512 (Computer Systems Design Services). These services are crucial for maintaining the operational backbone of the Bureau of the Fiscal Service, enabling functions such as data processing, secure storage, and network accessibility essential for financial management and reporting.
Given the 'COMPETITIVE DELIVERY ORDER' award type, what was the competitive landscape, and how did it influence the final price paid by the Treasury?
While 'COMPETITIVE DELIVERY ORDER' indicates multiple bids were considered, the specific number of bidders and the evaluation criteria are not provided. A robust competitive process typically drives down prices, but without detailed information on the bidding process and the pricing models used, it's difficult to definitively assess the price discovery effectiveness and ensure the best value was achieved.
What are the primary risks associated with a firm fixed price contract for IT hosting and infrastructure support over a three-year period?
A firm fixed price contract for dynamic IT services carries risks such as the vendor potentially overcharging if costs decrease or underdelivering if costs increase beyond projections. It can also limit flexibility to adapt to new technologies or changing security requirements, potentially leading to suboptimal performance or increased costs if modifications are needed.
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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Immixgroup, Inc (UEI: 159803972)
Address: 8444 WESTPARK DR STE 120, MC LEAN, VA, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $13,896,499
Exercised Options: $13,896,499
Current Obligation: $12,940,387
Parent Contract
Parent Award PIID: GS35F0330J
IDV Type: FSS
Timeline
Start Date: 2008-07-25
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2013-11-29
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