GSA awards $19.5M for Integrated Award Environment IT services to Octo Consulting Group, emphasizing computer systems design

Contract Overview

Contract Amount: $19,527,640 ($19.5M)

Contractor: Octo Consulting Group LLC

Awarding Agency: General Services Administration

Start Date: 2020-06-22

End Date: 2025-06-21

Contract Duration: 1,825 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ORDER FOR JOINT PRODUCT TEAM FOR THE INTEGRATED AWARD ENVIRONMENT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $19.5 million to OCTO CONSULTING GROUP LLC for work described as: ORDER FOR JOINT PRODUCT TEAM FOR THE INTEGRATED AWARD ENVIRONMENT Key points: 1. Contract focuses on IT systems design, a critical area for federal procurement efficiency. 2. The award was made under a full and open competition, suggesting a robust market. 3. The contract duration of five years indicates a long-term need for these services. 4. The use of BPA Call suggests a streamlined procurement process for specific needs. 5. The contractor, Octo Consulting Group, is a known entity in the federal IT space. 6. The specific NAICS code points to a focus on specialized computer systems design.

Value Assessment

Rating: good

The contract value of $19.5 million over five years averages $3.9 million annually. Benchmarking against similar IT systems design contracts awarded by GSA, this appears to be within a reasonable range, considering the scope and duration. The pricing structure, based on labor hours, allows for flexibility but requires careful monitoring to ensure cost-effectiveness. Without specific details on the labor categories and rates, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions to win the award.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down prices through market forces. It provides the best opportunity to secure high-quality services at the most favorable prices.

Public Impact

Federal agencies involved in procurement will benefit from improved integrated award environment systems. The services delivered will enhance the efficiency and effectiveness of federal contract awards. The geographic impact is nationwide, supporting federal procurement processes across all agencies. The contract supports the federal IT workforce by engaging a specialized service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on labor hours can lead to cost overruns if not closely monitored.
Ensuring consistent quality of service delivery over the contract's five-year term.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration suggests a stable, long-term need for the services.
The Integrated Award Environment is a key initiative for federal procurement modernization.

Sector Analysis

The federal IT services sector is a significant portion of government spending, with a large number of contractors vying for awards. Computer Systems Design Services (NAICS 541512) is a core component of this sector, encompassing a wide range of activities from system analysis to implementation. This contract fits within the broader trend of agencies seeking specialized IT support to modernize and streamline their operations. Comparable spending benchmarks for similar IT services contracts can vary widely based on scope, but this award appears moderate within the context of large federal IT procurements.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Octo Consulting Group, is not identified as a small business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract may be limited unless they are partners or subcontractors to the prime awardee, which is not guaranteed.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms for oversight would include regular performance reviews, monitoring of labor hours and costs, and adherence to contract deliverables. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Procurement Modernization Initiatives
Federal IT Infrastructure Modernization
Contract Award Systems
Integrated Award Environment (IAE)

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Labor hour contract type requires diligent oversight to manage costs.
Potential for scope creep if requirements are not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.5 million to OCTO CONSULTING GROUP LLC. ORDER FOR JOINT PRODUCT TEAM FOR THE INTEGRATED AWARD ENVIRONMENT

Who is the contractor on this award?

The obligated recipient is OCTO CONSULTING GROUP LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2020-06-22. End: 2025-06-21.

What is the specific nature of the 'Integrated Award Environment' and its importance to federal procurement?

The Integrated Award Environment (IAE) is a central hub for federal procurement information, consolidating various systems like FPDS, SAM.gov, and FBO.gov. Its importance lies in streamlining the federal acquisition process, providing a single point of entry for vendors to find opportunities, register, and manage their information, and for agencies to award and manage contracts. This contract supports the ongoing development and maintenance of these critical systems, aiming to improve efficiency, transparency, and compliance across the federal government's purchasing activities.

How does the 'BPA CALL' award type impact flexibility and cost control compared to other contract types?

A BPA Call (Blanket Purchase Agreement Call) is an order placed against an existing Blanket Purchase Agreement (BPA). BPAs are pre-negotiated agreements that allow agencies to purchase supplies or services from specific vendors more quickly and efficiently than traditional contract vehicles. A 'Call' is a specific order under that BPA. This award type offers flexibility as it allows for rapid procurement of needed services without a lengthy new solicitation process. For cost control, BPAs often have pre-negotiated ceiling prices, and calls are made against these. However, effective management and monitoring of individual calls are still crucial to prevent cost overruns, especially when the contract is labor-hour based.

What is Octo Consulting Group's track record with the General Services Administration and similar IT contracts?

Octo Consulting Group has a significant presence in the federal IT contracting space, including multiple awards from the General Services Administration (GSA). Their portfolio often includes work related to cloud migration, cybersecurity, data analytics, and IT modernization for various federal agencies. Their history with GSA suggests familiarity with the agency's procurement processes and requirements. Examining their past performance on similar IT systems design and integration contracts would provide further insight into their capabilities and reliability in delivering complex technical solutions.

How does the $19.5 million contract value compare to historical spending on the Integrated Award Environment?

The $19.5 million contract value represents a significant investment in the Integrated Award Environment (IAE). Historical spending on IAE systems and related IT services has been substantial, reflecting the ongoing need for modernization and maintenance of these critical procurement platforms. While this specific award is for a defined period (five years), it should be viewed in the context of the overall IAE budget, which encompasses development, sustainment, and operational costs across multiple contracts. Comparing this to previous individual contract awards for IAE components or similar system development efforts would provide a clearer picture of its relative scale.

What are the primary risks associated with a five-year IT services contract of this nature?

Primary risks for a five-year IT services contract like this include technological obsolescence, where the solutions developed may become outdated before the contract ends. There's also the risk of vendor lock-in, making it difficult to switch providers if performance degrades. Personnel turnover at the contractor can lead to loss of institutional knowledge and inconsistent service delivery. Furthermore, changes in agency priorities or budget fluctuations could impact the contract's scope or funding. Finally, ensuring the contractor maintains robust cybersecurity practices throughout the contract term is a critical ongoing risk to manage.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID16200006

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 10780 PARKRIDGE BLVD FL 4, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,527,640

Exercised Options: $19,527,640

Current Obligation: $19,527,640

Actual Outlays: $13,222,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QDCB19A0007

IDV Type: BPA

Timeline