EPA's $3.8M custom computer programming contract awarded to Keylogic, LLC for budget system support

Contract Overview

Contract Amount: $3,844,930 ($3.8M)

Contractor: Keylogic, LLC

Awarding Agency: General Services Administration

Start Date: 2024-09-15

End Date: 2026-09-14

Contract Duration: 729 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EPA CUSTOM COMPUTER PROGRAMMING SERVICES. IT PROFESSIONAL SERVICES TO SUPPORT THE DEVELOPMENT, MODIFICATION & MAINTENANCE OF EPA'S BUDGET FORMULATION SYSTEM.

Place of Performance

Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26505

State: West Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $3.8 million to KEYLOGIC, LLC for work described as: EPA CUSTOM COMPUTER PROGRAMMING SERVICES. IT PROFESSIONAL SERVICES TO SUPPORT THE DEVELOPMENT, MODIFICATION & MAINTENANCE OF EPA'S BUDGET FORMULATION SYSTEM. Key points: 1. Contract focuses on critical IT infrastructure for EPA's budget formulation. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and manage risk. 4. Delivery Order signifies a specific task within a larger contract vehicle. 5. Performance period of 729 days indicates a medium-term project. 6. Small business set-aside was not utilized, potentially limiting small business participation.

Value Assessment

Rating: good

The contract value of approximately $3.8 million for custom computer programming services appears reasonable given the scope of supporting the EPA's budget formulation system. Benchmarking against similar IT professional services contracts for system development and maintenance suggests this price point is within expected ranges. The firm fixed price structure provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a diverse range of qualified vendors.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers by allowing multiple companies to vie for the contract, driving down costs through market forces.

Public Impact

Federal employees within the EPA will benefit from improved tools for budget formulation and management. The contract delivers essential IT professional services for the development, modification, and maintenance of a critical financial system. The geographic impact is primarily national, supporting the EPA's nationwide operations. Workforce implications include the need for skilled IT professionals to perform custom computer programming.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized and difficult to transfer.
Reliance on a single vendor for critical system maintenance could pose risks if the vendor experiences financial or operational difficulties.

Positive Signals

Firm Fixed Price contract type helps mitigate cost overrun risks.
Full and open competition with multiple bidders suggests a robust selection process.
Delivery Order structure allows for phased implementation and potential adjustments.

Sector Analysis

This contract falls within the IT professional services sector, specifically custom computer programming. The market for such services is large and competitive, with numerous firms offering specialized development and maintenance capabilities. The EPA's spending on IT systems for financial management is a common practice across federal agencies, reflecting the increasing reliance on technology for operational efficiency. Comparable spending benchmarks for similar custom software development projects can vary widely based on complexity and duration.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to directly participate in this specific contract are limited. The overall impact on the small business ecosystem for IT services will depend on whether Keylogic, LLC, the prime contractor, engages small businesses for subcontracting roles, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Federal Acquisition Service, which awarded the delivery order. The firm fixed price contract type provides a degree of financial oversight by establishing a set cost. Transparency is facilitated by the contract award being publicly available. Accountability measures will be tied to the performance requirements outlined in the delivery order and the contract vehicle it falls under.

Related Government Programs

EPA Budget Formulation System
IT Professional Services
Custom Computer Programming
Federal Financial Management Systems

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical system maintenance

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.8 million to KEYLOGIC, LLC. EPA CUSTOM COMPUTER PROGRAMMING SERVICES. IT PROFESSIONAL SERVICES TO SUPPORT THE DEVELOPMENT, MODIFICATION & MAINTENANCE OF EPA'S BUDGET FORMULATION SYSTEM.

Who is the contractor on this award?

The obligated recipient is KEYLOGIC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2024-09-15. End: 2026-09-14.

What is the track record of Keylogic, LLC in delivering similar custom computer programming services to federal agencies?

Information regarding Keylogic, LLC's specific track record for delivering custom computer programming services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client feedback. Federal procurement databases and agency performance rating systems (e.g., Contractor Performance Assessment Reporting System - CPARS) would be the primary sources for evaluating their experience and success with similar projects. Understanding their history with firm fixed-price contracts and IT system development is crucial for gauging their reliability on this EPA contract.

How does the awarded price compare to market rates for similar custom computer programming services?

The provided data does not include specific market rate benchmarks for custom computer programming services tailored to the EPA's budget formulation system. However, the contract's value of approximately $3.8 million over two years, awarded under full and open competition with six bidders, suggests a competitive pricing environment. To perform a thorough comparison, one would need to analyze industry reports, consult government cost-estimating tools, and examine pricing data from comparable contracts awarded by agencies for similar IT professional services. The firm fixed-price nature of the contract implies that the government sought to lock in a price deemed reasonable at the time of award.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, vendor performance issues, and the risk of obsolescence of the developed system. Scope creep is mitigated by the firm fixed-price contract type, which incentivizes the contractor to adhere to the defined scope. Vendor performance risks are managed through contract oversight by the GSA and the EPA, along with performance metrics that would typically be included in the delivery order. The risk of obsolescence is inherent in IT projects; mitigation would involve planning for future upgrades and maintenance, and potentially incorporating flexibility into the system design to accommodate evolving technological landscapes and EPA requirements.

How effective is the current EPA budget formulation system, and what improvements are expected from this contract?

The provided data does not contain information on the current effectiveness of the EPA budget formulation system or specific expected improvements. This contract focuses on the development, modification, and maintenance of the system, implying that enhancements or updates are needed. The effectiveness of the improvements will be measured by the successful delivery of the contracted services and the system's subsequent performance in supporting EPA's budgetary processes. A post-award review or user feedback would be necessary to assess the actual impact and effectiveness.

What are the historical spending patterns for custom computer programming services at the EPA or GSA?

The provided data does not include historical spending patterns for custom computer programming services at the EPA or GSA. To analyze historical spending, one would need to access federal procurement data systems (like USAspending.gov or FPDS) and filter for contracts awarded by these agencies within the relevant NAICS code (541511) and service categories. This analysis would reveal trends in contract values, durations, award types, and prime contractors over time, providing context for the current $3.8 million award.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA23Q0052

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3168 COLLINS FERRY RD, MORGANTOWN, WV, 26505

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

Financial Breakdown

Contract Ceiling: $18,249,911

Exercised Options: $6,780,976

Current Obligation: $3,844,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSWA18D008D

IDV Type: FSS

Timeline