GSA's $42.8M CALM contract to Sevatec LLC for IT services shows strong competition and long-term performance

Contract Overview

Contract Amount: $42,789,942 ($42.8M)

Contractor: Sevatec LLC

Awarding Agency: General Services Administration

Start Date: 2020-10-27

End Date: 2026-03-31

Contract Duration: 1,981 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACT ACQUISITION LIFECYCLE MANAGEMENT (CALM) PHASES

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95113

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $42.8 million to SEVATEC LLC for work described as: CONTRACT ACQUISITION LIFECYCLE MANAGEMENT (CALM) PHASES Key points: 1. The contract leverages a Best Acquisition Program (BPA) Call, indicating a streamlined acquisition process for IT services. 2. A firm-fixed-price contract type suggests predictable costs and risk transfer to the contractor. 3. With 6 bidders, the competition level appears robust, likely driving favorable pricing. 4. The contract duration of nearly 2,000 days points to a sustained need for these services. 5. Sevatec LLC's role suggests a focus on IT acquisition lifecycle management, a critical government function. 6. The absence of small business set-aside flags a potential area for future consideration in similar procurements.

Value Assessment

Rating: good

The contract's value of $42.8 million over its period of performance is moderate for IT services. Benchmarking against similar IT lifecycle management contracts is challenging without more specific service details. However, the firm-fixed-price structure and strong competition suggest a reasonable value proposition for the government, assuming performance meets expectations. The total obligated amount is not provided, making a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders vying for the opportunity. This level of competition is generally considered healthy and suggests that the government sought a broad range of qualified vendors. The presence of multiple bidders typically leads to better price discovery and potentially more innovative solutions as contractors compete to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in more competitive pricing and a better overall value for the services rendered. It ensures that the government is not locked into a single provider without exploring market alternatives.

Public Impact

Federal agencies requiring support in acquiring and managing IT programs will benefit from the services provided. The contract supports the modernization and efficient procurement of critical IT systems across the government. Services are likely delivered to support federal IT acquisition efforts nationwide, with a primary focus on the California region where the contractor is based. The contract supports a workforce skilled in federal acquisition, IT project management, and related consulting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently excellent and renewal is likely without re-competition.
Reliance on a single contractor for critical acquisition lifecycle management could pose a risk if the contractor faces financial or operational challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace for these services.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and ongoing need, potentially leading to efficiencies through contractor expertise.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on acquisition lifecycle management. This niche involves supporting government agencies in the complex process of procuring, implementing, and managing technology solutions. The market for such services is substantial, driven by the government's continuous need to update its IT infrastructure and comply with evolving acquisition regulations. Comparable spending benchmarks would typically be found within IT professional services categories, particularly those related to program management and consulting.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This suggests that the primary focus was on securing the best overall solution through open competition. Future analysis could explore whether subcontracting opportunities exist within the performance of this contract and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) contracting officers and program managers. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for GSA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Acquisition Support Services
Federal IT Procurement
Program Management Support
Contract Lifecycle Management
IT Consulting Services

Risk Flags

Contract duration is long, potentially leading to vendor lock-in.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $42.8 million to SEVATEC LLC. CONTRACT ACQUISITION LIFECYCLE MANAGEMENT (CALM) PHASES

Who is the contractor on this award?

The obligated recipient is SEVATEC LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.8 million.

What is the period of performance?

Start: 2020-10-27. End: 2026-03-31.

What is Sevatec LLC's track record with the federal government, particularly in IT acquisition lifecycle management?

Sevatec LLC has a notable track record with the federal government, having secured numerous contracts across various agencies. Their expertise often centers on IT modernization, cybersecurity, and program management. For acquisition lifecycle management, their experience likely involves supporting agencies in navigating the Federal Acquisition Regulation (FAR), developing acquisition strategies, and managing vendor performance. A deeper dive into their past performance evaluations and contract history, particularly with GSA and similar agencies, would provide a more comprehensive understanding of their capabilities and reliability in this specific domain. Reviewing contract award data and performance metrics from previous engagements would illuminate their success rates and client satisfaction.

How does the $42.8 million contract value compare to similar IT acquisition lifecycle management contracts awarded by GSA or other agencies?

The $42.8 million contract value for IT acquisition lifecycle management services is within a moderate range for a multi-year federal contract of this nature. GSA, being a primary provider of IT services and acquisition support, awards contracts of varying sizes. Larger, more comprehensive IT modernization programs can reach hundreds of millions or even billions. However, for a specific focus on acquisition lifecycle management, which often involves specialized consulting and support rather than large-scale system development, $42.8 million over several years represents a significant but not extraordinary investment. Benchmarking requires comparing the scope of services, duration, and specific deliverables against other similar BPA calls or task orders issued under broader IT schedules.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential underperformance by the contractor, cost overruns (though mitigated by firm-fixed-price), and the risk of obsolescence if the IT landscape shifts rapidly. Mitigation strategies typically involve robust performance monitoring by GSA, clear performance metrics and deliverables outlined in the contract, and regular communication channels. The firm-fixed-price structure inherently transfers some cost risk to Sevatec LLC. Additionally, the full and open competition process helps mitigate the risk of selecting a non-capable vendor. Continuous market analysis by GSA can also help anticipate and address technological shifts.

How effective is the 'CALM Phases' approach as a framework for managing IT acquisitions, and what is the government's experience with it?

The 'CONTRACT ACQUISITION LIFECYCLE MANAGEMENT (CALM) PHASES' likely represents a structured methodology adopted by GSA or the specific program office to ensure IT acquisitions are managed systematically from initiation to closure. Such phased approaches are generally effective because they break down complex processes into manageable stages, allowing for better planning, execution, and oversight at each step. Government experience with phased acquisition lifecycles is extensive, as it aligns with standard project management best practices and federal acquisition regulations. The effectiveness hinges on the clarity of each phase's objectives, the rigor of reviews at phase gates, and the adaptability of the framework to different types of IT projects. Data on the success rates of IT projects managed under this framework would provide further insight.

What is the historical spending trend for IT acquisition lifecycle management services by the General Services Administration?

Historical spending trends for IT acquisition lifecycle management services by the GSA are generally on an upward trajectory, mirroring the government's increasing reliance on technology and the complexity of IT procurements. GSA consistently invests in IT support services to enable its own operations and to assist other federal agencies. While specific figures for 'CALM Phases' are not detailed here, overall GSA spending on IT professional services, including acquisition support, has seen significant growth over the past decade. This trend is driven by factors such as cybersecurity needs, cloud migration initiatives, and the ongoing digital transformation across federal agencies. Analyzing GSA's IT schedule spending and contract awards for similar service codes would reveal detailed historical patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: ID16210002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2815 OLD LEE HWY, FAIRFAX, VA, 22031

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,962,446

Exercised Options: $42,789,942

Current Obligation: $42,789,942

Actual Outlays: $25,515,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QDCB19A0008

IDV Type: BPA

Timeline