GSA's $25.9M EOSS-BP Contract with Sevatec LLC Faces Scrutiny for Potential Value Concerns

Contract Overview

Contract Amount: $25,941,494 ($25.9M)

Contractor: Sevatec LLC

Awarding Agency: General Services Administration

Start Date: 2020-11-24

End Date: 2026-05-23

Contract Duration: 2,006 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE OPERATIONS SOLUTIONS SUPPORT-BUSINESS PRACTICE (EOSS-BP)

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $25.9 million to SEVATEC LLC for work described as: ENTERPRISE OPERATIONS SOLUTIONS SUPPORT-BUSINESS PRACTICE (EOSS-BP) Key points: 1. The contract's value of $25.9 million raises questions about cost-effectiveness given the broad scope of 'Other Computer Related Services'. 2. Competition was full and open, but the BPA Call award mechanism warrants a closer look at price discovery. 3. Potential risks include overspending if services are not tightly managed and benchmarked against industry standards. 4. The IT sector is highly competitive, suggesting opportunities for better pricing and service delivery.

Value Assessment

Rating: questionable

The contract's total value of $25.9 million for 'Other Computer Related Services' appears high without specific performance metrics or benchmarks. Further analysis is needed to compare this to similar enterprise operations support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a BPA Call. While this indicates a competitive process, the specific pricing achieved through this mechanism needs to be evaluated against market rates for similar services.

Taxpayer Impact: Taxpayer funds are being utilized for enterprise operations support. Ensuring competitive pricing and efficient service delivery is crucial to maximize the value of this investment.

Public Impact

Federal agencies rely on such contracts for essential business operations support, impacting efficiency and service delivery. The use of BPA Calls can streamline procurement but requires diligent oversight to ensure fair pricing. Transparency in contract performance and spending is vital for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value without clear performance benchmarks.
Potential for scope creep in 'Other Computer Related Services'.
Limited insight into specific service delivery and cost breakdown.

Positive Signals

Awarded under full and open competition.
Long-term contract provides stability for agency operations.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending benchmarks in this area vary widely based on specialization, but large enterprise-wide support contracts require rigorous justification of costs.

Small Business Impact

The contract does not indicate specific set-asides for small businesses, and the prime contractor, Sevatec LLC, is not listed as a small business. Further investigation is needed to determine if small business participation was considered or achieved through subcontracting.

Oversight & Accountability

Oversight will be critical to ensure Sevatec LLC delivers on its contractual obligations efficiently and cost-effectively. The General Services Administration (GSA) should monitor performance metrics and spending closely.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High total contract value.
Broad service category ('Other Computer Related Services').
Lack of specific performance metrics in provided data.
Potential for uncompetitive pricing despite full and open competition.
No clear indication of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.9 million to SEVATEC LLC. ENTERPRISE OPERATIONS SOLUTIONS SUPPORT-BUSINESS PRACTICE (EOSS-BP)

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 $25.9 million.

What is the period of performance?

Start: 2020-11-24. End: 2026-05-23.

What specific enterprise operations solutions are being provided under this contract, and how do they align with agency needs to justify the $25.9 million expenditure?

The contract broadly covers 'Other Computer Related Services' for enterprise operations. Without detailed service descriptions and performance metrics, it's difficult to assess alignment with specific agency needs. A breakdown of services, such as IT support, business process optimization, or system integration, and their direct impact on agency efficiency would be necessary to justify the expenditure and confirm value.

Given the 'full and open competition' award, what was the competitive landscape, and how were prices determined to ensure they are fair and reasonable for the services rendered?

While 'full and open competition' suggests multiple bidders participated, the award mechanism (BPA Call) requires scrutiny. The government should have received competitive quotes, but the final pricing depends on the specific terms negotiated. Benchmarking these prices against similar contracts and market rates is essential to confirm they are fair and reasonable, especially for a contract of this magnitude.

What mechanisms are in place to measure the effectiveness and efficiency of the services provided by Sevatec LLC, and how will this impact future contract renewals or adjustments?

Effectiveness and efficiency are typically measured through Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) outlined in the contract. The GSA should be actively monitoring these metrics to ensure Sevatec LLC is meeting its obligations. Regular performance reviews and data-driven assessments will inform decisions on contract modifications, renewals, or potential termination if performance is unsatisfactory.

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 › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID16200012, 47QDCB20K0014

Offers Received: 4

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: $29,553,287

Exercised Options: $29,553,287

Current Obligation: $25,941,494

Actual Outlays: $8,424,354

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