GSA's $98M Max.gov Tech Services Contract with TCG Inc. Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $97,951,041 ($98.0M)

Contractor: TCG Inc

Awarding Agency: General Services Administration

Start Date: 2018-07-01

End Date: 2023-12-31

Contract Duration: 2,009 days

Daily Burn Rate: $48.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: BUDGET LINE OF BUSINESS AND MAXGOV TECHNOLOGY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $98.0 million to TCG INC for work described as: BUDGET LINE OF BUSINESS AND MAXGOV TECHNOLOGY SERVICES Key points: 1. The contract's total value of $98.95 million over five years raises questions about cost-effectiveness for custom programming services. 2. Full and open competition was utilized, but the impact on price discovery and overall value needs further examination. 3. Potential risks include vendor lock-in and ensuring continued competitive pricing throughout the contract's lifecycle. 4. The IT sector, specifically custom computer programming, is a significant area of federal spending.

Value Assessment

Rating: fair

The contract's pricing, based on labor hours, requires careful benchmarking against similar custom programming services to ensure it aligns with market rates and provides good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While full and open competition was employed, the specific bidding process and the number of responsive bids are crucial to understanding how effectively it drove competitive pricing.

Taxpayer Impact: The use of taxpayer funds for this contract necessitates a thorough review to ensure maximum value and prevent potential overspending.

Public Impact

Citizens rely on services like Max.gov for access to government data and information, making its reliable operation critical. The cost of IT services directly impacts the federal budget, influencing funds available for other essential programs. Transparency in government contracting builds public trust and ensures accountability for how taxpayer money is spent.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics
Potential for cost overruns
Limited visibility into subcontractor costs

Positive Signals

Utilized full and open competition
Contract duration provides stability

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Federal spending in this area is substantial, with agencies increasingly relying on specialized software and technical support to meet operational needs.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight of this contract by the General Services Administration (GSA) is essential to ensure TCG Inc. meets performance requirements and that the pricing remains competitive throughout the contract term.

Related Government Programs

Custom Computer Programming Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of detailed performance metrics
Potential for price creep over contract duration
Limited visibility into subcontractor performance
Dependence on a single vendor for critical services

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $98.0 million to TCG INC. BUDGET LINE OF BUSINESS AND MAXGOV TECHNOLOGY SERVICES

Who is the contractor on this award?

The obligated recipient is TCG INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $98.0 million.

What is the period of performance?

Start: 2018-07-01. End: 2023-12-31.

What specific performance metrics are in place to ensure the quality and timeliness of the custom computer programming services provided by TCG Inc. under this contract?

The provided data does not detail specific performance metrics. A thorough review would involve examining the contract's Statement of Work (SOW) and any associated Service Level Agreements (SLAs) to identify quantifiable measures for success, such as uptime, bug resolution times, and feature development completion rates.

How does the General Services Administration ensure that the labor hour rates paid to TCG Inc. remain competitive and reflect fair market value throughout the contract's duration?

GSA typically employs mechanisms like periodic price reviews, comparison with industry benchmarks, and potentially incorporating economic price adjustment clauses. The effectiveness of the initial full and open competition in setting a strong baseline price is also a key factor in maintaining long-term value.

What is the potential impact on federal IT infrastructure and service delivery if TCG Inc. fails to meet its contractual obligations for the Max.gov platform?

Failure to meet obligations could lead to disruptions in access to critical government data and services hosted on Max.gov, potentially impacting agency operations and public access. This could necessitate a costly and time-consuming transition to a new vendor or in-house solution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: ID05170104

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7348 GEORGIA AVENUE NW, WASHINGTON, DC, 20012

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

Financial Breakdown

Contract Ceiling: $137,148,572

Exercised Options: $114,997,398

Current Obligation: $97,951,041

Actual Outlays: $-2,428

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $11,816,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F069GA

IDV Type: FSS

Timeline