GSA awards $24.9M IT services contract to Affigent, LLC for District of Columbia operations

Contract Overview

Contract Amount: $24,948,881 ($24.9M)

Contractor: Affigent, LLC

Awarding Agency: General Services Administration

Start Date: 2021-05-29

End Date: 2024-05-30

Contract Duration: 1,097 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER 47QFCA21F0048 AWARD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $24.9 million to AFFIGENT, LLC for work described as: DELIVERY ORDER 47QFCA21F0048 AWARD. Key points: 1. Contract value of $24.9M over three years suggests a significant investment in IT services. 2. Full and open competition after exclusion of sources indicates a potentially competitive bidding process. 3. The contract's duration of 1097 days (approx. 3 years) allows for sustained service delivery. 4. Affigent, LLC, a relatively new entity, will be providing 'Other Computer Related Services'. 5. The fixed-price contract type shifts performance risk to the contractor. 6. The contract is categorized under 'Other Computer Related Services', a broad IT service area.

Value Assessment

Rating: fair

The contract value of $24.9 million over approximately three years for 'Other Computer Related Services' is substantial. Benchmarking this against similar IT service contracts within the federal government is challenging without more specific service details. However, the fixed-price nature of the award suggests a defined scope, and the competition level will be a key factor in assessing value for money. Further analysis would require comparing the specific services rendered to market rates for similar IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, certain sources may have been excluded prior to the solicitation, or the initial solicitation may have had limitations. The presence of two bidders suggests a moderate level of competition, which could influence pricing but may not represent the full spectrum of potential providers.

Taxpayer Impact: The limited competition may mean that taxpayers did not benefit from the lowest possible price achievable through a wider bidding pool. However, the fact that it was competed at all suggests an effort to secure a reasonable price.

Public Impact

Federal agencies operating within the District of Columbia will benefit from the IT services provided. The contract supports the delivery of 'Other Computer Related Services', crucial for maintaining federal IT infrastructure. The geographic impact is concentrated in the District of Columbia. The contract likely supports a workforce of IT professionals employed by Affigent, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition process raises questions about the breadth of market engagement.
The specific nature of 'Other Computer Related Services' is broad and could encompass a wide range of IT functions, making it difficult to assess performance without further detail.
The contractor, Affigent, LLC, may have limited historical performance data in the federal sector, posing a potential risk.

Positive Signals

The contract was awarded under a competitive process, indicating an effort to secure a qualified vendor.
The firm fixed-price contract type aligns with government objectives to control costs and manage financial risk.
The contract duration allows for continuity of essential IT services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under the broad category of 'Other Computer Related Services' (NAICS 541519), which encompasses a wide array of IT support, consulting, and integration services. The federal government is a major consumer of these services, with spending often concentrated in areas like cybersecurity, cloud computing, and general IT support. Comparable spending benchmarks would depend heavily on the specific services rendered, but the overall IT services market for the federal government is in the billions annually.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, Affigent, LLC, may engage small businesses as subcontractors if it aligns with their business strategy, though this is not explicitly mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract will primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract's fixed-price nature provides a degree of financial oversight by limiting cost overruns. Accountability measures will likely involve performance metrics and delivery schedules outlined in the contract. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
General Services Administration Contracts
Federal IT Support Services
Computer Systems Design Services

Risk Flags

Limited competition may have reduced price discovery.
Contractor's federal experience level is not detailed.
Scope of 'Other Computer Related Services' is broad and requires further definition for performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.9 million to AFFIGENT, LLC. DELIVERY ORDER 47QFCA21F0048 AWARD.

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2021-05-29. End: 2024-05-30.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The provided data classifies the services under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can include a wide range of IT support, consulting, and integration activities not elsewhere classified. Without the full contract statement of work, it is difficult to ascertain the precise services. These could range from network management and system administration to IT consulting, software implementation support, or hardware maintenance. The General Services Administration (GSA) Federal Acquisition Service, the awarding agency, typically procures a variety of IT support services to maintain its own infrastructure and support other federal agencies.

How does the $24.9 million contract value compare to similar IT service contracts awarded by GSA?

Comparing the $24.9 million contract value requires context regarding the specific services and duration. GSA awards numerous IT service contracts annually, with values ranging from small task orders to multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) vehicles. For a three-year contract focused on 'Other Computer Related Services,' $24.9 million represents a significant award, averaging over $8 million per year. To benchmark effectively, one would need to identify contracts with similar NAICS codes, service scopes, and contract lengths awarded by GSA or other agencies. The fact that it was competed, even with limited sources, suggests a deliberate procurement process aimed at achieving a fair market price for the defined services.

What are the potential risks associated with Affigent, LLC being a less established contractor in the federal space?

If Affigent, LLC is a relatively new or less experienced contractor within the federal sector, potential risks could include challenges in navigating federal acquisition regulations, understanding agency-specific requirements, and meeting performance expectations. There might be a steeper learning curve regarding reporting, security protocols, and inter-agency coordination. Furthermore, a less established track record could mean less readily available performance data for future contract evaluations. However, the competitive bidding process, even if limited, implies that Affigent, LLC met the minimum qualifications set forth in the solicitation. The government's risk is mitigated by the firm fixed-price contract type, which places the onus on the contractor to deliver within the agreed-upon budget.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process?

This designation indicates that the solicitation was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' suggests that certain potential offerors were excluded from the competition at some stage. This exclusion could be due to various reasons, such as failure to meet specific pre-qualification criteria, past performance issues, or specific statutory limitations. While it aims for broad competition, the exclusion implies that the pool of bidders might have been narrower than a pure 'full and open' competition. The presence of two bidders suggests that the exclusion did not entirely stifle competition, but it warrants understanding the rationale behind the source exclusion to ensure fairness and maximize potential value.

How does the firm fixed-price contract type impact cost control and contractor performance?

A firm fixed-price (FFP) contract is designed to provide the government with a stable, predictable cost for goods or services. Under an FFP agreement, the contractor, Affigent, LLC, assumes the primary responsibility for all costs incurred and any cost overruns. This shifts the financial risk from the government to the contractor. For the government, this means the total contract price is set and will not increase unless the contract is formally modified. This structure incentivizes the contractor to manage its costs efficiently and perform the work within the agreed-upon budget. For performance, the FFP structure motivates the contractor to meet quality standards and delivery schedules to ensure profitability, as any deviations that increase costs directly impact their bottom line.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA21Q0031

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc.

Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,948,881

Exercised Options: $24,948,881

Current Obligation: $24,948,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC59B

IDV Type: GWAC

Timeline