GSA Awards $4.1M Contract for IT Services to POWTEC SOLUTIONS LLC, Lacking Competition

Contract Overview

Contract Amount: $4,147,521 ($4.1M)

Contractor: Powtec Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2021-10-04

End Date: 2025-10-03

Contract Duration: 1,460 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 62ND OPERATIONS GROUP

Place of Performance

Location: MCCHORD AFB, PIERCE County, WASHINGTON, 98438

State: Washington Government Spending

Plain-Language Summary

General Services Administration obligated $4.1 million to POWTEC SOLUTIONS LLC for work described as: 62ND OPERATIONS GROUP Key points: 1. Contract Value: $4.15 million over 4 years. 2. Sole Provider: POWTEC SOLUTIONS LLC is the sole provider. 3. Risk: Lack of competition may lead to inflated prices. 4. Sector: Information Technology (IT) services.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without competitive benchmarks. Given the lack of competition, there's a risk that the firm fixed price may not reflect the most economical market rate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a limited source justification. This approach bypasses full and open competition, potentially limiting price discovery and value for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as the government did not explore options for potentially lower prices from other qualified vendors.

Public Impact

Citizens may question the fairness of awarding contracts without exploring competitive options. Government efficiency is potentially reduced if funds are not optimally spent. Transparency in government spending is diminished when competition is limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Positive Signals

Definitive Contract Awarded
Firm Fixed Price Contract

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, making competitive sourcing crucial for cost efficiency.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or if opportunities were missed.

Oversight & Accountability

The award process, particularly the lack of competition, warrants further oversight to ensure the government obtained fair value and that the limited source justification was appropriate.

Related Government Programs

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

Risk Flags

Lack of Full and Open Competition
Potential for Non-Competitive Pricing
Limited Market Research Indicated
No Small Business Awarded

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4.1 million to POWTEC SOLUTIONS LLC. 62ND OPERATIONS GROUP

Who is the contractor on this award?

The obligated recipient is POWTEC 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 $4.1 million.

What is the period of performance?

Start: 2021-10-04. End: 2025-10-03.

What was the justification for not competing this contract under SAP?

The provided data states the contract was 'NOT COMPETED UNDER SAP'. This implies a limited source justification was likely used, possibly due to specific technical requirements, urgency, or a lack of available vendors. However, without the specific justification document, the exact reasoning remains unclear and warrants further investigation to ensure it aligns with federal procurement regulations.

How can the government ensure fair pricing without competition?

Even in limited competition scenarios, agencies can employ several strategies to ensure fair pricing. This includes conducting thorough market research to understand price ranges, obtaining quotes from multiple sources where possible (even if not a full competition), negotiating aggressively, and utilizing historical pricing data. Robust internal review processes and independent cost estimates can also help validate pricing.

What is the potential impact on future IT service procurements?

A pattern of non-competitive awards, especially for common IT services, can discourage potential new entrants into the government contracting market. It may also signal to incumbent contractors that competition is less likely, potentially reducing their incentive to offer competitive pricing in the future. This can lead to higher overall IT spending for the government.

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 - END USER

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47QFAA21R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4040 WHEATON WAY STE 111, BREMERTON, WA, 98310

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,256,257

Exercised Options: $4,162,189

Current Obligation: $4,147,521

Actual Outlays: $4,058,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline