GAO awards $125,588 for software support to Instakey Security Systems, a sole-source contract
Contract Overview
Contract Amount: $12,558 ($12.6K)
Contractor: Shield Security Systems, L.L.C.
Awarding Agency: Government Accountability Office
Start Date: 2024-04-01
End Date: 2027-03-31
Contract Duration: 1,094 days
Daily Burn Rate: $11/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BACKGROUND: THE GOVERNMENT ACCOUNTABILITY OFFICE (GAO) HEADQUARTERS: AWARD(S)1(ONE) NON-PERSONNEL PURCHASE ORDER, TO INSTAKEY SECURITY SYSTEMS FOR INSTAKEY SECURITY SYSTEMS FOR SOFTWARE ADMINISTRATION AND SUPPORT OF THE WEB BASED KEY MANAGEMENT.
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80226
State: Colorado Government Spending
Plain-Language Summary
Government Accountability Office obligated $12,558 to SHIELD SECURITY SYSTEMS, L.L.C. for work described as: BACKGROUND: THE GOVERNMENT ACCOUNTABILITY OFFICE (GAO) HEADQUARTERS: AWARD(S)1(ONE) NON-PERSONNEL PURCHASE ORDER, TO INSTAKEY SECURITY SYSTEMS FOR INSTAKEY SECURITY SYSTEMS FOR SOFTWARE ADMINISTRATION AND SUPPORT OF THE WEB BASED KEY MANAGEMENT. Key points: 1. The contract's value appears reasonable for specialized software administration and support. 2. Sole-source award limits price discovery and potentially increases costs for taxpayers. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This contract supports essential web-based key management functions for GAO. 5. The duration of the contract suggests a need for ongoing support. 6. The small business status of the contractor is not specified, impacting set-aside analysis.
Value Assessment
Rating: fair
The contract value of $125,588 for a three-year period for software administration and support is difficult to benchmark without more specific details on the software and services provided. However, given the sole-source nature, it is challenging to assess if this represents the best value. Compared to similar IT support contracts, the per-year cost of approximately $41,862 seems within a moderate range for specialized government IT services. Further analysis would require understanding the scope of work and comparing it to industry standards for similar software administration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one vendor, Instakey Security Systems, was solicited. This approach is typically used when a specific product or service is only available from a single source, or when there is a compelling justification for not seeking competition. The lack of competition means that the Government Accountability Office (GAO) did not benefit from the price reductions and innovation that can arise from a competitive bidding process. This can lead to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the lowest possible cost for the required services.
Public Impact
The primary beneficiary is the Government Accountability Office (GAO), which will receive continued support for its web-based key management system. The services delivered include software administration and ongoing support, ensuring the functionality and security of the key management system. The geographic impact is primarily within GAO's operational facilities, likely concentrated in Washington D.C. and potentially other field offices. Workforce implications are minimal, as this contract is for software support and not for direct personnel services that would significantly alter GAO's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Lack of transparency in the justification for sole-source procurement.
- Potential for vendor lock-in with specialized software support.
- Limited insight into the contractor's performance history for this specific service.
Positive Signals
- Fixed-price contract type mitigates cost overrun risk for the government.
- Contract duration suggests a stable and ongoing need for the service.
- Support for a critical system like web-based key management ensures operational continuity.
Sector Analysis
This contract falls within the broader Information Technology (IT) sector, specifically focusing on software administration and support. The market for specialized IT support services for government agencies is substantial, with numerous companies offering solutions. However, contracts for niche software like key management systems can sometimes lead to limited competition, especially if the software is proprietary. Benchmarking this contract's value is challenging without knowing the specific software's market penetration and the complexity of its administration. The overall IT services market is highly competitive, but specialized support can command premium pricing.
Small Business Impact
The provided data does not indicate whether this contract was set aside for small businesses, nor does it specify if subcontracting opportunities for small businesses are included. Given the sole-source nature, it is less likely to have been a competitive set-aside. Further investigation would be needed to determine if Instakey Security Systems is a small business and if any subcontracting plans are in place to engage the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Government Accountability Office's internal procurement and contract management processes. As the awarding agency, GAO is responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency regarding the sole-source justification and contract performance metrics would be key to assessing accountability. There is no specific mention of an Inspector General's direct jurisdiction over this particular purchase order, though GAO does have an Office of Inspector General.
Related Government Programs
- Government IT Support Services
- Software Licensing and Maintenance
- Information Security Management
- Key Management Systems
Risk Flags
- Sole-source award may not represent best value.
- Lack of competitive bidding limits price discovery.
- Potential for vendor lock-in.
Tags
it-services, software-support, government-accountability-office, purchase-order, sole-source, firm-fixed-price, information-technology, key-management, colorado, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Government Accountability Office awarded $12,558 to SHIELD SECURITY SYSTEMS, L.L.C.. BACKGROUND: THE GOVERNMENT ACCOUNTABILITY OFFICE (GAO) HEADQUARTERS: AWARD(S)1(ONE) NON-PERSONNEL PURCHASE ORDER, TO INSTAKEY SECURITY SYSTEMS FOR INSTAKEY SECURITY SYSTEMS FOR SOFTWARE ADMINISTRATION AND SUPPORT OF THE WEB BASED KEY MANAGEMENT.
Who is the contractor on this award?
The obligated recipient is SHIELD SECURITY SYSTEMS, L.L.C..
Which agency awarded this contract?
Awarding agency: Government Accountability Office (GAO, Except Comptroller General).
What is the total obligated amount?
The obligated amount is $12,558.
What is the period of performance?
Start: 2024-04-01. End: 2027-03-31.
What is the specific web-based key management software being supported, and what is its market share or prevalence within government agencies?
The specific web-based key management software is provided by Instakey Security Systems. Information regarding its market share or prevalence within government agencies is not publicly available in the provided data. Typically, key management systems are specialized solutions designed to manage cryptographic keys used for encryption and decryption. Their adoption can vary significantly based on agency needs for security, compliance, and operational efficiency. Without knowing the specific software product, it's difficult to assess its commonality or compare its support costs against widely adopted alternatives. Further research into government IT asset inventories or solicitations for similar services might shed light on its usage.
What was the justification for awarding this contract on a sole-source basis, and were any alternative solutions considered?
The justification for awarding this contract on a sole-source basis is not detailed in the provided data. Generally, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a critical need for the item and no other source will satisfy the requirement. This could be due to proprietary software, unique expertise, or an urgent requirement. Without the official justification document (e.g., a Justification and Approval document), it's impossible to determine the specific reasons GAO cited for not competing this award or if alternative solutions were evaluated and found unsuitable.
How does the annual cost of this contract compare to industry benchmarks for similar software administration and support services?
The annual cost for this contract is approximately $41,862 ($125,588 / 3 years). Benchmarking this against industry standards for similar software administration and support services is challenging without more specific details about the software's complexity, the scope of support (e.g., 24/7 vs. business hours, level of technical expertise required), and the number of users or systems supported. However, for specialized government IT support, this annual figure appears to be within a moderate range. Many IT support contracts can range from tens of thousands to millions of dollars annually depending on the criticality and scale of the supported systems. A more precise comparison would require analyzing the specific service level agreements (SLAs) and comparing them to market rates for comparable managed IT services.
What is Instakey Security Systems' track record with the federal government, particularly with the GAO?
The provided data indicates that Instakey Security Systems is the contractor for this specific purchase order with the Government Accountability Office (GAO). However, it does not offer details on Instakey Security Systems' broader track record with the federal government or its past performance specifically with GAO beyond this award. To assess their track record, one would typically look at contract databases (like SAM.gov or FPDS) for previous awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Without this additional information, it's difficult to gauge their reliability and past performance effectiveness.
What are the potential risks associated with a sole-source contract for essential software support?
The primary risks associated with a sole-source contract for essential software support include lack of price competition, which can lead to higher costs for the government compared to a competitively awarded contract. There's also a risk of vendor lock-in, where the agency becomes dependent on a single vendor, making it difficult or costly to switch providers in the future. Furthermore, without the pressure of competition, the vendor might have less incentive to innovate or provide superior service levels. Accountability can also be a concern, as the government has fewer options if performance issues arise. Finally, the justification for sole-source awards needs careful scrutiny to ensure it is legitimate and not a way to avoid competitive processes.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 05GA0A20Q0067
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7456 W 5TH AVE, LAKEWOOD, CO, 80226
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,358
Exercised Options: $29,358
Current Obligation: $12,558
Actual Outlays: $4,200
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-04-01
Current End Date: 2027-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-04-10
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