GSA awards $40.8M task order for custom computer programming to a single source

Contract Overview

Contract Amount: $40,865,224 ($40.9M)

Contractor: Sabel Systems Technology Solutions, LLC

Awarding Agency: General Services Administration

Start Date: 2021-03-12

End Date: 2024-09-11

Contract Duration: 1,279 days

Daily Burn Rate: $32.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SBIR PHASE III TASK ORDER 16

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45430

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $40.9 million to SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC for work described as: SBIR PHASE III TASK ORDER 16 Key points: 1. The contract's value is substantial, indicating a significant need for the services provided. 2. Limited competition raises concerns about potential overpayment and reduced innovation. 3. The firm-fixed-price structure offers some cost certainty but may not fully capture efficiencies. 4. Performance is expected over nearly four years, suggesting a long-term engagement. 5. The task order falls within the IT services sector, specifically custom programming. 6. The contractor, SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC, is the sole awardee. 7. The award was made by the General Services Administration (GSA).

Value Assessment

Rating: fair

Benchmarking the value of this task order is challenging without more specific details on the services rendered and comparable contracts. However, a $40.8 million award for custom computer programming over nearly four years suggests a significant investment. The firm-fixed-price contract type provides some cost control, but the lack of competition means there's less external pressure to ensure the most competitive pricing. Without data on the specific deliverables and their market value, it's difficult to definitively assess value for money, but the sole-source nature warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a rapid award. The lack of competition limits the government's ability to leverage market forces to drive down prices and encourage innovative solutions. While justified in certain situations, sole-source awards generally result in higher costs compared to competitively bid contracts.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government missed an opportunity to solicit multiple proposals and potentially secure a lower price or more innovative solution through a competitive process.

Public Impact

The primary beneficiary is the agency requiring custom computer programming services, likely to enhance its IT infrastructure or develop new software solutions. The services delivered will focus on custom computer programming, addressing specific functional requirements. The geographic impact is centered in Ohio, where the contractor is located. Workforce implications may include employment opportunities for skilled IT professionals at SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits opportunities for other capable vendors.
Potential for reduced innovation due to absence of competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term duration allows for sustained service delivery.
Award to a single, presumably capable, vendor.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically the custom computer programming services sub-sector. This market is characterized by high demand for specialized software development and IT solutions. The total federal spending on IT services is in the billions annually, with custom programming being a significant component. This task order represents a portion of that spending, addressing a specific need within the General Services Administration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary awardee is not identified as a small business, and there's no explicit mechanism to ensure small business participation through subcontracting. This represents a missed opportunity to leverage small businesses for specialized IT services.

Oversight & Accountability

Oversight for this task order would primarily fall under the General Services Administration's Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by federal contract databases, though the specifics of sole-source justifications may vary in their public disclosure. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Custom Software Development
General Services Administration Contracts
Task Orders
Sole Source Procurements

Risk Flags

Sole Source Justification
Lack of Competition
Potential for Overpricing
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.9 million to SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC. SBIR PHASE III TASK ORDER 16

Who is the contractor on this award?

The obligated recipient is SABEL SYSTEMS TECHNOLOGY 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 $40.9 million.

What is the period of performance?

Start: 2021-03-12. End: 2024-09-11.

What specific custom computer programming services are being procured under this task order, and what is the expected outcome?

The provided data indicates the contract is for 'Custom Computer Programming Services' (NAICS code 541511) under a 'SBIR PHASE III TASK ORDER 16'. SBIR (Small Business Innovation Research) Phase III contracts typically involve the commercialization of technologies developed under earlier SBIR phases. Therefore, this task order likely pertains to the further development, refinement, or implementation of a technology or software solution that originated from a small business's R&D efforts. The specific services could range from software engineering, system integration, database development, to user interface design, aimed at bringing a previously researched innovation to a market-ready or operational state for the government. The expected outcome would be a functional, deployed, and potentially commercialized software product or system that meets the government's evolving needs.

How does the $40.8 million value of this task order compare to typical sole-source IT service contracts of similar duration?

Comparing the $40.8 million value of this sole-source task order to similar contracts is challenging without more granular data on the specific services and the agencies involved. However, for a nearly four-year engagement (1279 days, approximately 3.5 years), this award represents an average annual value of roughly $11.7 million. Sole-source IT contracts can vary widely in price depending on complexity, criticality, and the uniqueness of the required services. While not inherently excessive, the lack of competition means this value cannot be directly benchmarked against competitive bids. Government-wide, large sole-source IT procurements exist, but the justification for avoiding competition is crucial for assessing value. Without knowing the specific technological advancements or unique capabilities this contract is funding, a definitive comparison is difficult, but the scale suggests a significant undertaking.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with awarding a $40.8 million contract on a sole-source basis is the potential for reduced value for money. Without competition, there is less incentive for the contractor to offer the lowest possible price, and the government may end up paying more than it would in a competitive environment. Another significant risk is the lack of innovation; competitive procurements often spur creative solutions as vendors vie for the contract. A sole-source award can also limit opportunities for other capable businesses, potentially stifling the broader market. Furthermore, there's a risk that the government may become overly reliant on a single vendor, creating long-term dependencies and potentially hindering future flexibility. Finally, sole-source awards can sometimes be perceived as less transparent, potentially raising concerns about fairness and the justification process.

What is the track record of SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC in performing government contracts, particularly sole-source awards?

Information regarding the specific track record of SABEL SYSTEMS TECHNOLOGY SOLUTIONS, LLC in performing government contracts, especially sole-source awards of this magnitude, is not detailed in the provided data. A comprehensive assessment would require examining their past performance ratings, contract history (including types of contracts, agencies served, and dollar values), and any reported issues or successes. For sole-source awards, it's particularly important to understand if the company has a history of successfully delivering complex projects under such conditions or if there have been challenges. Without access to a broader contract performance database or specific past performance reviews for this contractor, it's difficult to provide a detailed analysis of their track record. However, the fact that they received this substantial sole-source award suggests they possess capabilities deemed essential by the awarding agency.

How does this contract align with the General Services Administration's (GSA) mission and strategic goals?

The General Services Administration (GSA) aims to provide federal agencies with the best value in real estate, acquisition, and technology. This task order, for custom computer programming services, directly aligns with GSA's role in facilitating efficient and effective government operations through technology. By awarding this contract, GSA is enabling another federal agency (or potentially GSA itself) to acquire necessary IT capabilities. The SBIR Phase III nature suggests it supports innovation and the commercialization of technologies, which can lead to improved government services and potentially new market opportunities. While the sole-source aspect warrants scrutiny regarding value, the underlying objective of acquiring critical IT services supports GSA's mission to modernize and optimize federal IT infrastructure.

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 › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA21Q0052

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14300 GRACKLE CT, GAINESVILLE, VA, 20155

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $40,865,284

Exercised Options: $40,865,284

Current Obligation: $40,865,224

Actual Outlays: $-189

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,392,356

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA19D0007

IDV Type: IDC

Timeline