GSA's CALM Agile contract awarded to Sevatec LLC for $30.3M, with 6 bidders

Contract Overview

Contract Amount: $30,294,632 ($30.3M)

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: $15.3K/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) AGILE

Place of Performance

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

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $30.3 million to SEVATEC LLC for work described as: CONTRACT ACQUISITION LIFECYCLE MANAGEMENT (CALM) AGILE Key points: 1. Contract value of $30.3M over its period of performance suggests a significant investment in agile acquisition lifecycle management. 2. The presence of 6 bidders indicates a competitive market for these specialized IT services. 3. The firm-fixed-price contract type aims to control costs and provide predictable spending. 4. Awarded under a BPA Call, this contract leverages an existing framework for potentially faster procurement. 5. The contract's duration of 1981 days (approx. 5.4 years) allows for sustained support and development. 6. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services', a broad category. 7. The contract is managed by the General Services Administration (GSA), a key federal IT procurement agency.

Value Assessment

Rating: good

The contract value of $30.3M for agile acquisition lifecycle management services appears reasonable given the 5.4-year duration and the specialized nature of the work. Benchmarking against similar large-scale IT service contracts within the federal government suggests that this level of investment is within expected ranges for comprehensive support. The firm-fixed-price structure helps in managing cost predictability, although the ultimate value-for-money will depend on the successful delivery of agile capabilities and efficiencies.

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. The presence of multiple bidders suggests a healthy level of competition for this type of IT service. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions. The specific details of the bidding process and evaluation criteria would provide further insight into how effectively competition drove value.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

Federal agencies seeking to modernize their acquisition processes and adopt agile methodologies will benefit from the services provided. The contract supports the delivery of agile acquisition lifecycle management, aiming to improve efficiency and speed in federal procurement. The geographic impact is likely nationwide, as GSA services support various federal agencies across the United States. The contract supports a workforce skilled in IT services, agile development, and acquisition management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if agile requirements are not tightly managed.
Dependence on a single contractor (Sevatec LLC) for critical acquisition lifecycle functions.
Risk of vendor lock-in if knowledge transfer and documentation are insufficient.
Ensuring continuous alignment with evolving federal acquisition regulations and best practices.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type helps control costs and provides budget certainty.
Leverages an existing BPA Call, potentially streamlining delivery and oversight.
Long contract duration allows for sustained support and development of agile capabilities.
Contractor (Sevatec LLC) likely possesses specialized expertise in IT and acquisition management.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on 'Other Computer Related Services' (NAICS 541519). The federal IT services market is substantial, with agencies increasingly seeking agile solutions to modernize operations and improve acquisition processes. Contracts like this are crucial for enabling digital transformation within government. Comparable spending benchmarks for large-scale IT support and agile development services within federal agencies often run into tens or hundreds of millions of dollars over several years, making this $30.3M contract a mid-to-large size engagement.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The prime contractor, Sevatec LLC, is a mid-sized business. While there is no direct small business set-aside, the contract terms may include provisions for subcontracting to small businesses. The extent to which Sevatec LLC utilizes small business subcontractors will determine the direct impact on the small business ecosystem for this specific award. Further analysis of subcontracting plans would be needed to fully assess this impact.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA), which is responsible for federal procurement and IT services. As a BPA Call, it likely falls under the existing oversight framework of the parent BPA. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally maintained through federal contract databases like FPDS.gov, where award details are published. Specific Inspector General jurisdiction would depend on the agency ultimately utilizing the services procured through this contract.

Related Government Programs

IT Professional Services
Agile Development Services
Acquisition Management Systems
General Services Administration (GSA) IT Contracts
Federal Acquisition Service (FAS) BPA Calls

Risk Flags

Potential for cost overruns if scope is not well-managed.
Risk of underperformance if contractor lacks sufficient agile expertise.
Dependency on a single BPA Call mechanism for service delivery.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.3 million to SEVATEC LLC. CONTRACT ACQUISITION LIFECYCLE MANAGEMENT (CALM) AGILE

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 $30.3 million.

What is the period of performance?

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

What is Sevatec LLC's track record with federal IT contracts, particularly those involving agile methodologies?

Sevatec LLC has a notable track record in federal IT contracting, often focusing on areas like agile development, cybersecurity, and cloud migration. They have secured numerous prime contracts across various federal agencies, including the Department of Defense, Homeland Security, and civilian agencies. Their experience with agile methodologies is a key aspect of their service offerings, suggesting they are well-positioned to manage contracts like the CALM Agile BPA Call. Analyzing their past performance on similar contracts, including client satisfaction ratings and successful project completions, would provide a clearer picture of their capabilities and reliability in delivering complex IT solutions within the federal space.

How does the $30.3M contract value compare to similar federal contracts for agile acquisition lifecycle management?

The $30.3M contract value over approximately 5.4 years for agile acquisition lifecycle management services is within a reasonable range for federal IT procurements of this scope. Large federal agencies often invest significantly in modernizing their acquisition processes, and agile methodologies are a key component of this. Comparable contracts for enterprise-wide IT support, agile transformation, or specialized acquisition system development can range from tens to hundreds of millions of dollars. The value is influenced by factors such as the number of users supported, the complexity of the systems involved, and the duration of the contract. This specific award appears to be a substantial, but not exceptionally large, investment for sustained agile support.

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

Primary risks include potential scope creep in agile development, ensuring effective knowledge transfer to avoid vendor lock-in, and maintaining alignment with evolving federal regulations. Mitigation strategies likely involve robust change control processes for agile requirements, clear documentation and training plans, and regular performance reviews with GSA. The firm-fixed-price nature of the contract also incentivizes the contractor to manage scope effectively. Furthermore, the full and open competition process suggests that the contractor was selected based on demonstrated capability to manage these risks.

How effective is the firm-fixed-price contract type in ensuring value for money for this agile IT service?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs and providing budget certainty, which is beneficial for taxpayer value. For agile services, FFP can be more challenging than in traditional waterfall projects, as agile development inherently involves iterative changes. However, when well-defined requirements or scope boundaries are established, or when the FFP is applied to specific, well-understood phases or deliverables within an agile framework, it can still drive efficiency. The success of FFP in this context likely depends on how the contract is structured to manage scope and incorporate changes while maintaining cost control.

What is the historical spending pattern for 'Other Computer Related Services' (NAICS 541519) by the General Services Administration?

The General Services Administration (GSA) is a significant procurer of IT services, including those categorized under NAICS 541519 ('Other Computer Related Services'). Historical spending data from sources like FPDS shows GSA consistently awards substantial amounts in this category annually, supporting a wide range of IT modernization, cloud services, and specialized technical support initiatives across government. Spending in this area has generally trended upwards as agencies increasingly rely on advanced IT solutions. The specific amount spent on CALM Agile services within this broader category would be a subset of GSA's overall IT expenditures.

What does the competition level (6 bidders) imply about the market for agile acquisition lifecycle management services?

A competition level of six bidders for this contract suggests a moderately competitive market for agile acquisition lifecycle management services. This indicates that there are several capable companies in the federal space offering these specialized IT solutions. A healthy number of bidders generally leads to better price discovery and encourages innovation as companies strive to differentiate themselves. It also provides the government with a good selection of qualified vendors, increasing the likelihood of selecting a contractor that offers both strong technical capabilities and competitive pricing.

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: ID16210003

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: $32,129,753

Exercised Options: $32,119,753

Current Obligation: $30,294,632

Actual Outlays: $14,206,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QDCB19A0008

IDV Type: BPA

Timeline