GSA awards $87M for IT support to Valiant Solutions, raising questions on value and competition

Contract Overview

Contract Amount: $86,962,523 ($87.0M)

Contractor: Valiant Solutions, LLC

Awarding Agency: General Services Administration

Start Date: 2018-08-03

End Date: 2023-08-02

Contract Duration: 1,825 days

Daily Burn Rate: $47.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SECOPSII SECURITY ENGINEERING AND OPERATIONS SUPPORT 2 IGF::OT::IGF

Place of Performance

Location: HENDERSON, VANCE County, NORTH CAROLINA, 27536

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $87.0 million to VALIANT SOLUTIONS, LLC for work described as: SECOPSII SECURITY ENGINEERING AND OPERATIONS SUPPORT 2 IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting potential for competitive pricing. 2. Significant contract value of $87M over 5 years requires careful monitoring for efficiency. 3. Lack of small business participation is noted, potentially limiting broader economic impact. 4. The IT sector is highly competitive, making continuous benchmarking crucial for value.

Value Assessment

Rating: fair

The contract's total value is substantial. Benchmarking against similar IT support contracts is essential to determine if the pricing reflects fair market value and efficiency over its five-year duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific price discovery mechanisms and the final negotiated rates are key to assessing true value.

Taxpayer Impact: While competition is present, the large contract value means any inefficiencies or overpricing could represent a significant impact on taxpayer funds.

Public Impact

Citizens expect efficient use of taxpayer dollars, especially for IT services. Transparency in contract performance and spending is vital for public trust. The absence of small business involvement may limit opportunities for smaller, innovative firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation.
Long contract duration (5 years) may reduce flexibility.
Time and Materials pricing can lead to cost overruns if not managed tightly.

Positive Signals

Awarded under full and open competition.
Contract supports critical IT operations.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, with benchmarks varying based on service complexity and duration.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This is a concern as it misses opportunities to support small businesses and potentially leverage their agility and innovation.

Oversight & Accountability

Oversight is crucial for this large, multi-year IT contract. Regular performance reviews and cost audits by the General Services Administration are necessary to ensure accountability and value for money.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of small business participation.
Potential for cost overruns with Time and Materials pricing.
Long contract duration may limit adaptability to changing needs.
Need for robust performance monitoring and cost control.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $87.0 million to VALIANT SOLUTIONS, LLC. SECOPSII SECURITY ENGINEERING AND OPERATIONS SUPPORT 2 IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is VALIANT SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $87.0 million.

What is the period of performance?

Start: 2018-08-03. End: 2023-08-02.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar IT support roles, considering the contract's duration and scope?

Without specific task order data or detailed service breakdowns, a precise per-unit cost comparison is challenging. However, given the $87M total value over five years, agencies should continuously benchmark labor categories and service delivery against GSA schedules and private sector equivalents to ensure cost-effectiveness and identify potential savings.

What specific performance metrics are in place to mitigate risks associated with a Time and Materials contract, and how are they being monitored?

Time and Materials contracts inherently carry a risk of cost escalation. Effective oversight requires clearly defined performance standards, regular progress reports, and rigorous review of timesheets and material costs. The agency must actively manage scope and ensure that contractor effort is directly tied to measurable outcomes and deliverables to control spending.

Given the full and open competition, what factors contributed to Valiant Solutions being the sole awardee, and does this suggest a lack of broader market interest or capability?

While awarded under full and open competition, the sole awardee status warrants further investigation. It could indicate highly specialized requirements, a concentrated market, or potentially that other bidders did not meet all evaluation criteria. Understanding the bidding landscape and the reasons for limited participation is key to assessing the effectiveness of the competition strategy.

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: ID10180057

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Solutions LLC

Address: 208 N GARNETT ST, HENDERSON, NC, 27536

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,308,622

Exercised Options: $90,308,622

Current Obligation: $86,962,523

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $24,846,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F290AA

IDV Type: FSS

Timeline