GSA Awards $116M Task Order to SMARTRONIX for Computer Systems Design Services

Contract Overview

Contract Amount: $116,136,797 ($116.1M)

Contractor: Smartronix, LLC

Awarding Agency: General Services Administration

Start Date: 2018-02-02

End Date: 2023-08-04

Contract Duration: 2,009 days

Daily Burn Rate: $57.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO AWARD THE TASK ORDER.

Place of Performance

Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $116.1 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO AWARD THE TASK ORDER. Key points: 1. The contract value is substantial at $116.1 million. 2. SMARTRONIX, LLC is the sole awardee. 3. The contract type is Cost Plus Award Fee, indicating potential for performance-based incentives. 4. The sector is IT services, specifically Computer Systems Design. 5. The duration spans over 5 years, from 2018 to 2023.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure can lead to costs exceeding initial estimates if performance incentives are heavily weighted. Benchmarking against similar IT services contracts is difficult without detailed performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be against a pre-existing contract vehicle.

Taxpayer Impact: The competitive nature of the award aims to secure fair pricing, but the Cost Plus Award Fee structure introduces variability in the final taxpayer cost.

Public Impact

Ensures continued IT support services for federal agencies. Supports a specific vendor, SMARTRONIX, LLC. The large contract value indicates significant federal reliance on external IT expertise. The duration suggests a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can lead to cost overruns.
Lack of specific performance metrics makes value assessment difficult.
Sole awardee for this task order.

Positive Signals

Awarded under full and open competition.
Long contract duration indicates sustained need.
Potential for performance incentives.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Federal spending in this area is consistently high as agencies modernize and maintain complex IT infrastructures.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests the requirement may have been beyond the scope or capabilities typically offered by small businesses in this domain.

Oversight & Accountability

The award is a Delivery Order under a larger contract vehicle managed by the General Services Administration (GSA), which typically has established oversight mechanisms. Further review of the parent contract would be needed for detailed oversight assessment.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPAF structure.
Lack of transparency on specific performance metrics.
No small business participation indicated.
Long contract duration requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $116.1 million to SMARTRONIX, LLC. IGF::OT::IGF THE PURPOSE OF THIS REQUIREMENT IS TO AWARD THE TASK ORDER.

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $116.1 million.

What is the period of performance?

Start: 2018-02-02. End: 2023-08-04.

What were the key performance indicators (KPIs) that drove the award fee for SMARTRONIX, LLC?

The specific Key Performance Indicators (KPIs) that determined the award fee for SMARTRONIX, LLC are not detailed in the provided data. Cost Plus Award Fee (CPAF) contracts typically link a portion of the payment to the contractor's achievement of specific performance objectives. These objectives are usually defined in the contract's Performance Work Statement (PWS) and can include metrics related to timeliness, quality, cost savings, or customer satisfaction.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types in terms of risk for the government?

CPAF contracts present a moderate risk to the government. While they incentivize contractor performance through award fees, they also allow for costs to exceed the initially negotiated target cost if performance is exceptional. This contrasts with Fixed-Price contracts, where the contractor bears more cost risk, or Cost Plus Incentive Fee (CPIF), which has more defined cost-sharing formulas for exceeding or falling short of targets.

What is the typical benchmark for Computer Systems Design Services contracts of this value and duration?

Benchmarking a $116 million, 5-year contract for Computer Systems Design Services is complex without specific details on the scope of work and required expertise. However, contracts of this magnitude generally indicate a significant and ongoing need for specialized IT support, often involving complex system integration, cybersecurity, or infrastructure management, which are common in large federal IT procurements.

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

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $165,117,068

Exercised Options: $165,117,068

Current Obligation: $116,136,797

Actual Outlays: $-162,279

Subaward Activity

Number of Subawards: 164

Total Subaward Amount: $59,265,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0050

IDV Type: GWAC

Timeline